Saudi Pipeline Shutdown Sparks Oil Price Fears Amid Yemen Conflict
Saudi Arabia's East-West Pipeline, a vital outlet for Middle Eastern oil, was shut down on Thursday after it was attacked by unknown assailants. The pipeline, which runs from Saudi Arabia's oil fields to the Red Sea port of Yanbu, has allowed the kingdom to export about a third of its pre-war oil volume.
The attack came as Yemen's Houthis conducted a lightning offensive along the Red Sea, putting them in a position to control shipping. The closure of the East-West Pipeline is likely to spike energy prices further, which have already soared above $100 per barrel this week.
The pipeline was attacked on Thursday morning, with social media posts showing large plumes of black smoke claiming multiple locations were hit. Saudi Arabia did not say who was responsible for the attacks, but CNN reported earlier that the pipeline had been hit by drones originating from Iraq.