Saudi Arabia shut its main east-west crude oil pipeline on Monday. Iran-aligned Houthi forces targeted the infrastructure with a series of drone attacks. This pipeline allows Saudi exports to bypass the strategic Strait of Hormuz.
Brent crude prices surged more than 3.7% following the announcement. The international benchmark climbed above $108.50 per barrel. Both Brent and WTI crude prices currently trade well above the $100 mark.
The closure intensifies concerns regarding extended supply disruptions in the Middle East. These attacks highlight growing risks to regional energy infrastructure and global energy security.