Saudi Oil Pipeline Shutdown Threatens Global Market Balance

The East-West oil pipeline in Saudi Arabia was severely damaged in an attack last week and will be out of service for several weeks as repairs are made. The 1,200-kilometer-long pipeline is a crucial part of Saudi Arabia's strategy to shift its oil exports from the Persian Gulf to the Red Sea, avoiding the Strait of Hormuz where Iranian attacks have disrupted shipping.

The pipeline can carry up to 7 million barrels of oil per day and was forced offline after an attack that Saudi Arabia blamed on drones from Iranian-backed militias in Iraq. Two regional officials told The Associated Press that the damage is extensive and will require several weeks to repair, although a specific timeline has not been given.

The pipeline's shutdown comes at a time when global oil markets are already under pressure due to rising tensions between Saudi Arabia and Iran, as well as concerns over inflation and interest rates in major economies.