Saudi Pipeline Shutdown Threatens Up to 4% of Global Oil Supply

Saudi Arabia's major pipeline to the Red Sea has been shut down due to drone attacks from Iraq, threatening to disrupt global oil supplies.

The East-West oil pipeline, which transports crude oil from Saudi Arabia's oil fields to the port of Yanbu on the Red Sea, was forced offline by the attack.

According to Reuters, Saudi oil buyers and traders estimate that if the pipeline remains shut down, Saudi Arabia will run out of oil stocks for exports within days, resulting in a loss of up to 4 percent of global supply.

The disruption could worsen the existing global supply crunch, which has pushed fuel prices to record highs since the start of the US-Iran conflict. The pipeline's shutdown may take anywhere from five to six weeks to repair, although some sources suggest it could be fixed sooner and resume pumping partially while repairs are ongoing.