Saudi Pipeline Closure Sparks Global Energy Fears
Saudi Arabia's East-West pipeline has been closed due to an attack by drones from Iranian-backed militias in Iraq, raising concerns about global energy markets. The closure is a significant blow as the pipeline carries around 2.6 million to 4 million barrels of oil per day, which is about 4% of the global supply.
The pipeline's closure comes amid ongoing tensions between Saudi Arabia and Iran, with Yemen's Houthi rebels also targeting key Red Sea shipping routes. While some tanker traffic has resumed in the Strait of Hormuz, it remains below pre-war levels, and the Houthis have tightened their grip on the Bab el-Mandeb Strait.
Experts warn that these disruptions could lead to even higher oil prices and shortages, as Brent crude is already trading at over $105 a barrel. The closure of the East-West pipeline and continued disruptions in Hormuz and Bab el-Mandeb Straits have raised concerns about the global energy supply.