Saudi Oil Pipeline Shutdown Threatens Global Crude Supplies

A crucial Saudi oil pipeline that was struck in an attack will be out of service for weeks as the damage is repaired.

The East-West Pipeline, which runs 1,200 kilometers across Saudi Arabia, has been shut down after an attack on Thursday that Riyadh blamed on drones from Iranian-backed militias in Iraq.

The officials told The Associated Press that repairing the damage could take three to five weeks. Although they did not say how much oil might get through during this time, it is clear that a significant portion of Saudi's crude production will be lost to the market if the pipeline's flow stops completely.

Saudi Arabia relies on the East-West Pipeline to move its crude production from Gulf ports to the port of Yanbu on the Red Sea. This is because Iranian attacks have stifled shipping through the Strait of Hormuz, forcing Saudi to shift exports away from the Persian Gulf.