Commodities
Saudi Pipeline Shutdown Sends Oil and Gas Prices Soaring
Oil and gas prices surged on Monday after Saudi Arabia shut down its east-west pipeline in response to drone attacks.
The pipeline, which links the Gulf to the Red Sea, had been a crucial route for oil exports since the Iran conflict disrupted shipping in the Strait of Hormuz.
The price of Brent crude oil rose by around 3% to $108 per barrel, while UK natural gas prices climbed 5% to 209p per therm, hitting their highest level since December 2022.
Richard Hunter, head of markets at Interactive Investor, noted that the pipeline's shutdown would cause additional supply constraints and fuel inflationary impacts, citing the US Consumer Prices Index report which showed a 3.9% increase in gasoline prices over August.