Saudi Pipeline Closure Threatens Global Energy Markets with Shortages and Higher Prices

Saudi Arabia's East-West pipeline has been closed due to a recent attack blamed on Iranian-backed militias in Iraq. The closure is raising concerns about global energy markets, which are already under stress from the war with Iran.

The East-West pipeline transports oil across Saudi Arabia, carrying it from the Persian Gulf to the Red Sea. It's a crucial route for getting some crude out of the Middle East, and its closure could lead to shortages and higher prices for fuel and other essentials.

According to Rystad Energy, an average 2.6 million to 4 million barrels of oil per day were moved through the pipeline and out of the Red Sea port of Yanbu since late August. This volume is now at risk of 'disappearing from the market.'