Saudi Pipeline Shutdown Sends Oil Prices Soaring Amid Ongoing Conflict

Oil prices surged by around 3% to $108 per barrel after Saudi Arabia shut down its east-west pipeline in response to drone attacks from Iraq.

The pipeline, which links the Gulf to the Red Sea, had been moving several million barrels of oil each day and was a crucial route for exports.

Saudi oil exports through the Red Sea port at the pipeline's end have more than doubled since the Iran war began, according to the International Energy Agency (IEA).

Richard Hunter, head of markets at Interactive Investor, said the attacks are causing additional supply constraints and that the conflict is far from resolution.