Saudi Oil Pipeline Shut Down for Weeks Amid Ongoing Conflict

A crucial Saudi oil pipeline, hit by drones in an attack, will be mostly out of service for weeks as damage is repaired. The East-West Pipeline, which runs 1,200 kilometers across the country, was shut down after a drone strike on Thursday that Saudi Arabia blamed on Iranian-backed militias in Iraq.

The repair process could take three to five weeks, according to regional officials briefed on the matter. The pipeline may work partially during this time, but it's unclear how much oil will flow through it. This is a significant blow to Saudi Arabia's oil exports, which have already been affected by the Iran war.

Rystad Energy, a Norway-based research firm, estimated that a month-long closure of the pipeline would represent a 'large disruption' to crude deliveries, making them longer and more expensive. The market could initially manage it, but a longer shutdown would require a major reallocation of global crude flows.