Saudi Pipeline Shutdown Raises Global Energy Prices

A vital oil pipeline in Saudi Arabia was shut down after a drone attack from Iraq, threatening to send energy prices even higher.

The East-West pipeline, which has been moving four million to five million barrels per day, is the main route out for global supplies of Middle East oil since the Strait of Hormuz has been largely shut by war. The pipeline's closure could impact 4% to 5% of global supply.

Saudi Arabia's Crown Prince Mohammed bin Salman asked US President Donald Trump for military help fighting the Houthis, but Trump said Washington would not intervene directly for now, instead offering intelligence support. The Houthis have advanced along Yemen's Red Sea coast, potentially extending disruption to another major oil route.