Saudi Pipeline Shutdown Sends Oil Prices Soaring Amid Middle East Tensions

The global energy crisis deepened after Saudi Arabia halted its major East-West pipeline following attacks. The move disrupted a key route bypassing the Strait of Hormuz during the US-Iran war, pushing oil prices higher.

Brent crude rose as much as 3.7% to above $108 a barrel before paring gains, while West Texas Intermediate was near $103. Saudi Arabia said it had halted the pipeline as a precaution after attacks on Friday, with no indication of when operations would resume.

'It all boils down to the duration,' said June Goh, senior oil market analyst at Sparta Commodities SA. If flows resume quickly, the impact should be limited as inventories at Yanbu could be tapped, but a prolonged shutdown could force output cuts.