Saudi Pipeline Strike Raises Alarm Over Korea's Crude Oil Supply

A recent drone attack has knocked out Saudi Arabia's East-West pipeline, which routes oil around the Strait of Hormuz. This has put Korea's crude oil supply on alert as the war in the Middle East escalates.

Korea has secured most of its crude needs for September and October, so a supply disruption is unlikely in the immediate term. However, the government held an emergency meeting with refiners to prepare for possible chain reactions from tighter supply and higher energy prices to broader inflation if shipments this month are affected.

The pipeline was used to send up to 7 million barrels of crude per day to the port of Yanbu on the Red Sea for export. Restarting the pipeline could take several weeks, according to local officials.