Saudi Pipeline Shutdown Threatens Global Energy Prices Amid Middle East Tensions

The Saudi oil pipeline has been shut down after coming under aerial attack, threatening to send energy prices even higher. The attack occurred in a widening Middle East war and was described as 'probably' being carried out by Iran by US President Donald Trump.

The pipeline, which runs 1,200 km across the Arabian Peninsula, had helped Saudi Arabia bypass a shipping logjam in the Strait of Hormuz. It accounted for 4% to 5% of global supply and was moving between 4 million and 5 million barrels per day.

Saudi Arabia's de facto ruler, Crown Prince Mohammed bin Salman, has asked the US for military help fighting the Houthis in Yemen, but Washington has refused direct involvement for now. The Houthi movement, backed by Iran, has tightened its grip on Red Sea shipping and seized a strategic island at the mouth of the Bab el-Mandeb strait.