Saudi Pipeline Attack Triggers Global Oil Supply Jitters

Crude oil prices surged on Tuesday as Saudi Arabia announced it would cancel part of its September shipments to Europe, exacerbating global supply concerns.

The move comes after a drone attack damaged pumping infrastructure and shut down the key East-West pipeline, which has a capacity of 7 million barrels per day. Repairs are expected to take between three and five weeks.

Saudi Arabia is now trying to increase exports through the Strait of Hormuz, but this faces logistical barriers including limited tankers and rising freight rates.