Saudi Pipeline Outage Sends Oil Prices Soaring Amid Global Supply Concerns
Oil prices rose more than 1% on Tuesday as concerns over global supplies intensified after attacks disrupted Saudi Arabia's East-West pipeline and planned talks between Gulf Arab states and Iran were postponed.
The rise in oil prices added to inflation concerns, pushing benchmark 10-year US Treasury yields to 5%, their highest level since October 2023. The yield later eased to 4.9895%.
Saudi Arabia's East-West pipeline, which allows the kingdom to transport around four million barrels of oil per day to the Red Sea and bypass the Strait of Hormuz, was disrupted after strikes on Friday that Riyadh blamed on Iran-backed fighters in Iraq.
The latest attack followed missile and drone strikes by Iran-backed Houthi forces in Yemen on Monday, targeting the Khamis Mushait military airbase. The assault reportedly targeted aircraft hangars, radar systems, runways, and ammunition depots.