Saudi Pipeline Shutdown Sends Oil Prices Soaring

Crude oil prices surged on Sunday after Saudi Arabia shut down its critical East-West pipeline following an attack by drones launched from Iraq. The pipeline, which can carry 7 million barrels per day, has been a key route for shifting crude exports away from the Gulf as tensions simmer between Iran and the US over control of the Strait of Hormuz.

The closure comes after a series of attacks on Saudi oil infrastructure, including an assault on a major energy facility in Yemen last week that injured over 70 people. The Houthi militants in Yemen have also declared a maritime embargo on Saudi Arabia.

The price jump was led by Brent crude, which rose 3.51% to $108.28 per barrel. U.S. West Texas Intermediate futures also gained ground, climbing 3.46% to $103.51 per barrel. The diplomatic meeting between Iran and Gulf Arab states scheduled for Monday in Oman has been postponed due to the pipeline attack.