Saudi Pipeline Closure Threatens Global Energy Markets with Higher Prices

The closure of Saudi Arabia's East-West pipeline after an attack has raised concerns about global energy markets, which are already under strain due to the war with Iran. The pipeline is a crucial route for getting crude out of the Middle East, and its shutdown could lead to even starker shortages and higher prices.

The 1,200-kilometer-long pipeline carries oil from a processing facility near the Persian Gulf westward to the Red Sea, where it's loaded onto tankers heading north towards Europe or south through the Bab el-Mandeb Strait. According to Rystad Energy, 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.

This represents around 4% of the global oil supply, according to the International Energy Agency. The closure could push Brent crude prices even higher, as they have already risen to over $105 a barrel due to supply squeezes. Analysts warn that this could lead to further pain for consumers in the coming weeks and months, with fuel and household energy bills expected to increase.