Saudi Oil Shipments Canceled Amid Drone Attacks on Infrastructure

Saudi Arabia has canceled oil shipments to European refineries following drone attacks on its energy infrastructure. The disruptions, which began with the East-West Pipeline and the Red Sea port of Yanbu, have affected at least two European refining customers.

The cancellations came after Saudi officials said that the attack on the pipeline originated from Iraq via Iran-aligned militias. Yemen's Houthi movement has also claimed responsibility for attacks targeting Yanbu and other facilities operated by Saudi state oil company Aramco.

European refineries typically buy Saudi crude under term contracts, which can include force majeure provisions allowing companies to cancel shipments under extraordinary circumstances. The disruption has contributed to higher Brent crude prices as fighting intensifies along Yemen's Red Sea coastline.