Saudi Pipeline Closure Drives Oil Prices to Record High Amid Global Disruptions

The closure of Saudi Arabia's East-West oil pipeline due to drone attacks has sent crude oil prices soaring to over $108 per barrel. The pipeline, which carries an estimated 7 million barrels a day across Saudi Arabia, was shut down as a precautionary measure after multiple attacks on September 11.

The disruption to global oil supplies, combined with ongoing conflicts in the Strait of Hormuz and Bab el-Mandeb Strait, has put a strain on the global economy. The U.S. Energy Information Administration reports that about 25 million barrels of oil per day transited these straits during the first half of 2025.

With flows through the Strait of Hormuz slowing to just 6-9 million barrels per day, world leaders and experts warn that continued disruptions could lead to a global recession. The Houthis, backed by Iran, have also seized Perim Island, allowing them to control the Bab el-Mandeb Strait.

As a result, diesel prices in the United States have hit a new high of $6.23 per gallon on September 14, according to AAA. The impact of these disruptions will be felt across the globe, driving up oil prices and shipping costs for consumer goods and other commodities.