Saudi Pipeline Attack Threatens Global Oil Supplies

A drone attack on Saudi Arabia's East-West Pipeline has put nearly four percent of global oil supplies at risk, according to a report by Reuters. The pipeline is expected to be out of commission for five to six weeks while repairs are made, which could exacerbate existing supply chain disruptions.

The attack comes after a lightning Houthi offensive that put the group in control of Yemen's side of the Bab el-Mandeb, a key Red Sea chokepoint for Saudi Arabian oil shipments. This has already led to a surge in oil prices, with Brent trading up three percent on Monday at nearly $108 per barrel.

The rising price of Brent does not necessarily reflect the even higher prices that customers are paying for oil, and especially refined products like diesel. The impact of the pipeline attack is still uncertain, but it has the potential to further destabilize global energy markets.