Saudi Pipeline Shutdown Sends Oil Prices Soaring Above $105

Saudi Arabia's East-West Pipeline, which transports up to 7 million barrels of crude per day, has been shut down after a drone strike on Friday. The pipeline serves as an alternative route for Saudi oil exports that bypasses the Strait of Hormuz.

Global oil prices surged in response to the disruption, with Brent crude climbing above $105 a barrel and West Texas Intermediate reaching $101.39 a barrel. Both benchmarks saw nearly 5% gains during trading before paring some of their losses.

The shutdown has deepened supply anxiety in global oil markets, already strained by Iranian threats to the Strait of Hormuz. However, US President Donald Trump's signal that Iran 'wants to make a deal quickly' trimmed some of the rally in oil prices.