Saudi Pipeline Shutdown Sends Oil Prices Soaring to New Heights
Saudi Arabia shut its East-West crude pipeline following drone strikes that originated in Iraq, causing oil and gas prices to surge. The attack occurred on September 11, with drones hitting the pipeline in the Riyadh and Medina areas, resulting in injuries and damage.
The pipeline, which moves four to five million barrels a day, roughly 4 to 5 per cent of global supply, was shut as a precaution while specialized teams secured it and assessed its safety. The Saudi ministry of foreign affairs blamed the attacks on drones from Iraq, with the Iraqi prime minister's office confirming that the attack originated in Maysan province.
Brent crude rose about 3 per cent to $108 a barrel on Monday morning, while UK natural gas prices climbed around 5 per cent to 209 pence per therm, their highest level since December 2022. The shutdown lands as the war widens in Yemen, where Houthi forces have advanced along the coast against the Saudi-backed government.