Saudi Pipeline Closure Threatens Global Oil Supplies Amid Ongoing Iran War

The closure of Saudi Arabia's East-West pipeline has raised fears that global energy markets could face even starker shortages due to the ongoing war with Iran, pushing prices higher for fuel and other essentials.

The pipeline, which stretches over 1,200 kilometers across the desert nation, is crucial for getting some crude out of the Middle East by shipping it to the Red Sea rather than through the Strait of Hormuz. The pipeline was closed after a recent attack blamed on drones from Iranian-backed militias in Iraq.

Repairs could take three to five weeks, according to regional officials. An average 2.6 million to 4 million barrels of oil a day moved through the pipeline and out of the Red Sea port of Yanbu since late August. Four million barrels per day is about 4% of the global oil supply.

Brent crude traded at more than $105 a barrel on Monday, with experts warning that more supply shocks and higher prices could pile up, straining households worldwide. The pipeline's closure has added to existing concerns over shipping through the Strait of Hormuz, which is still well below pre-war levels.