Saudi Oil Rerouting Stabilizes Prices Amid Middle East Risks
Saudi Arabia's oil exports have been rerouted after damage to its main pipeline in Yemen, but prices have stabilized for now.
The East-West pipeline was damaged in an attack by Iran-backed Houthi rebels last week, paralyzing the route that had become Saudi Arabia's main oil export corridor since the war with Iran began.
As a result, prices rose above $108 a barrel, but have since fallen below $105 after Saudi Arabia redirected some of its crude to the eastern export terminal of Ras Tanura.
The oil is loaded onto tankers that travel through the Strait of Hormuz, where shipping remains limited due to periodic Iranian attacks on vessels in the region.
No repair timeline has been set for the East-West pipeline, which will remain a key factor influencing energy prices until it resumes operations.