Saudi Pipeline Closure Sparks Global Oil Supply Concerns

Saudi Arabia's East-West oil pipeline has been shut down following a strike that damaged a major pumping station. The incident occurred as regional fighting intensifies, with Iran-backed groups involved in clashes across the region.

The closure could remove up to 3.6 million barrels per day of crude from global supplies, about 3.6% of global demand, according to trade intelligence firm Kpler. Repairs are expected to take four to six weeks, due to shortages of spare parts and disruptions to supply chains.

Satellite imagery showed significant damage to the pumping station following the strike, which was blamed on Iranian-backed militias in Iraq. The East-West pipeline allows Saudi Arabia to transport crude to the Red Sea, providing an alternative to shipping oil through the Strait of Hormuz.

Oil prices rose sharply following the shutdown announcement, with Brent crude trading between $108 and $109.80 a barrel. Energy analysts warn that pipelines designed to bypass maritime chokepoints can remain vulnerable to attacks, becoming 'sitting ducks' when targeted.