Saudi Pipeline Shutdown Sends Oil Prices Soaring
Oil and gas prices have surged following Saudi Arabia's shutdown of its east-west pipeline in response to drone attacks. The move has caused further disruption to global supply, with wholesale prices rising sharply.
The Brent crude oil price increased by around 3% to $108 per barrel on Monday morning, while UK natural gas prices rose by approximately 5% to 209p per therm, the highest level since December 2022.
Richard Hunter, head of markets at Interactive Investor, noted that the pipeline had been a crucial route for oil exports since the Iran war disrupted shipping in the Strait of Hormuz. He stated, 'This east-west pipeline... had been moving several million barrels each day and inevitably causes additional supply constraints.'
The IEA predicted a 2.5 million barrel per day decrease in worldwide oil consumption in 2026 compared to 2025 due to the supply disruption.