Saudi Pipeline Reopening Jolts Oil Market with 3.5% Price Drop

The Brent barrel price plummeted by over 3.5% after US Energy Secretary Chris Wright announced that Saudi Arabia's pipeline, damaged in a recent attack, will resume operations 'very soon'.

The pipeline, which connects eastern Saudi Arabia to the Red Sea coast, was shut down last Saturday due to drone attacks from Iraq.

Wright stated that the attack was carried out by proxy groups backed by Iran, but assured that the Saudis are resourceful and will get the pipeline back up in a short term. He did not specify a date for the full restoration of the infrastructure.

The pipeline has been a crucial alternative to the Strait of Hormuz, allowing Saudi Arabia to maintain oil flow to international markets without relying on the strait.