Saudi Pipeline Closure Adds to Energy Crisis Fears

Saudi Arabia's East-West pipeline has been closed after an attack by drones from Iranian-backed militias in Iraq, raising fears of global energy shortages and higher prices for fuel and other essentials.

The pipeline is crucial for getting oil out of the Middle East through the Red Sea rather than the Strait of Hormuz. The closure comes as Brent crude traded at over $105 a barrel on Monday.

Rystad Energy said an average of 2.6 million to 4 million barrels of oil per day moved through the pipeline and out of the Red Sea port of Yanbu since late August, putting that volume at risk of 'disappearing from the market.'

The disruption is part of a broader crisis in global energy markets due to the war with Iran. While some tankers are again traversing the Strait of Hormuz, traffic remains well below pre-war levels.