Saudi Pipeline Shutdown Sparks Oil Price Spike

Oil and gas prices have surged following Saudi Arabia's shutdown of its east-west pipeline due to drone attacks. The move has caused further disruption to global supply, sending wholesale prices higher.

The price of a barrel of Brent crude oil increased by around 3% to $108 (£80) on Monday morning, while UK natural gas prices rose by approximately 5% to 209p per therm, the highest level since December 2022.

Saudi Arabia's foreign ministry attributed the attacks to drones coming from Iraq, with the Iraqi government pledging an investigation. The pipeline, which links the Gulf to the Red Sea, had been transporting several million barrels daily before its closure.