Saudi Pipeline Closure Sends Oil Prices Soaring Amid Ongoing Middle East Conflict

Oil prices have surged after Saudi Arabia closed its east-west pipeline in response to drone attacks. The move has caused further disruption to global oil supplies, leading to a 3% increase in Brent crude oil prices to $108 per barrel.

The UK natural gas price also rose by around 5% to 209p per therm, reaching the highest level since December 2022.

Saudi Arabia's east-west pipeline is a crucial route for oil exports, moving several million barrels each day. The closure of the pipeline suggests that the conflict in the Middle East is far from resolution.

Richard Hunter, head of markets at Interactive Investor, noted that 'the development also suggests that the conflict is as far away from resolution as ever and the inflationary impacts of elevated oil products are starting to become keenly felt.'