Saudi Pipeline Shutdown Threatens Global Oil Supplies Amid Yemen Conflict
The East-West Pipeline, a crucial Saudi oil pipeline, will be mostly out of service for several weeks due to damage from an attack. Two regional officials revealed that repairing the damage could take three to five weeks.
The pipeline carries a weekly average of 2.6 million to 4 million barrels per day, which will be lost if it's completely shut down. Oil prices have increased by more than 2% amid concerns about global petroleum supplies and Saudi Arabia's ability to export crude.
The pipeline shutdown is part of a broader conflict between the Houthis and Saudi-backed forces in Yemen. The Houthis have been striking Saudi oil infrastructure and shipping, stepping up pressure on global oil prices and boosting Iran's leverage in its war with the United States.