Saudi Pipeline Shutdown Sends Oil Prices Soaring
Saudi Arabia has temporarily halted operations on its East-West oil pipeline after a drone attack. The pipeline, which runs across the Arabian Peninsula and transports around 4-5% of global oil supply, was closed as a precautionary measure.
The attack is believed to have originated in Iraq, where Iranian-backed militias maintain significant influence. Baghdad has since dismissed an Iraqi military commander who oversaw operations in Maysan province, which borders Iran.
The East-West pipeline has become increasingly important as an alternative route for Saudi oil exports amid disruptions to tanker traffic through the Strait of Hormuz during the ongoing US-Iran conflict. The attack on the pipeline and another near the Bab el-Mandeb Strait have contributed to a renewed rise in global oil prices, which have moved above $100 a barrel.