Saudi Pipeline Shutdown Sends Oil Prices Soaring

Oil and gas prices have spiked in response to Saudi Arabia shutting down its east-west pipeline following drone attacks. The move has caused further disruption to global supply, leading to a surge in wholesale prices.

The price of Brent crude oil rose by around 3% to $108 (£80) per barrel on Monday morning. UK natural gas prices increased by approximately 5% to 209p per therm, reaching the highest level since December 2022.

Richard Hunter, head of markets at Interactive Investor, stated that the east-west pipeline's shutdown would inevitably lead to additional supply constraints and exacerbate inflationary impacts. He noted that the conflict in the Middle East appears far from resolution.