Saudi Pipeline Shutdown Drives Oil Prices to Four-Month High

Crude oil prices surged to a four-month high after Saudi Arabia shut down its major East-West pipeline following drone attacks on Thursday. The closure of the pipeline, which has a capacity of around 7 million barrels per day, has disrupted a key route used to bypass the Strait of Hormuz.

The shutdown comes as tensions between the US and Iran remain at an impasse over control of the strategic waterway. Talks between Iran and several Gulf nations on establishing a temporary shipping corridor through Hormuz were postponed, with Oman's Foreign Minister Badr Albusaidi stating that no indication yet exists of when the pipeline will resume operations.

The East-West pipeline transports oil across Saudi Arabia to Red Sea ports, and its closure has highlighted its importance in maintaining energy flows across the Middle East. Oil prices rose toward $103 a barrel, up 9% from last week's levels, as investors reacted to the news.