Saudi Pipeline Repair on Track Despite Ongoing Regional Tensions
A major oil pipeline in Saudi Arabia, damaged by an Iran-backed drone attack earlier this month, is expected to resume operations within days. The pipeline, operated by Saudi Aramco, serves as a crucial alternate route for exporting oil, bypassing the Strait of Hormuz. With the ongoing US war with Iran causing a near halt to oil traffic through the strait, the closure of the pipeline has affected up to 4% of the global oil supply, leading to a surge in oil prices.
The attack caused significant damage to the pipeline's pumping station, but repairs are reportedly underway. The Saudi energy ministry has not commented on the extent of the damage or the timing of the pipeline's reopening. However, Bloomberg reports that the pipeline will return to about half capacity soon, with full capacity restoration possibly taking up to six weeks.
The situation remains fluid, with potential for further escalation in the region. The ongoing conflict has heightened tensions and led to increased oil prices, with Brent crude reaching over $109 per barrel.