Oil prices rise after Saudi Arabia shut down critical pipeline that bypasses Strait of Hormuz

Live updates

1. 18h ago

   Brent Crude Surges Past $108 Following Saudi Pipeline Shutdown

   Oil prices continue to climb as Saudi Arabia keeps its East-West pipeline closed following Houthi strikes. Brent crude has risen around 20% this month, surpassing $108. Market volatility is intensifying due to a combination of the Saudi outage, a supply halt in Libya, and reports of Iranian attacks on ships in the Gulf. These disruptions coincide with Houthi territorial gains and a deadlock in regional diplomacy, fueling fears of prolonged supply instability across the Middle East.

   Why it matters

   The East-West pipeline allows Saudi Arabia to move crude to the Red Sea without passing through the Strait of Hormuz. A shutdown threatens 4% of the global oil supply. This outage occurs during a broader escalation involving U.S.-Iran conflict and Houthi rebel activity.

   What is confirmed

   • Brent crude prices have risen around 20% this month and surged past $108.
   • Houthi rebels have conducted strikes on Saudi Arabia.
   • Saudi Arabia has shut down its East-West pipeline.

   Still unconfirmed

   • Iran has conducted attacks on ships in the Gulf.
   • Houthi rebels have made territorial gains.
   • A supply halt in Libya is compounding the oil outage.

   What to watch next

   • Federal Reserve rate decision
   • Evidence of pipeline repairs or restoration of flow
   • Updates on U.S.-Iran military conflict
   Sources used for this update (6)

   1. www.foxnews.com — US Air Force colonel shot down over Iran recounts 'modern-day miracle'
   2. www.cnbc.com — Oil extends gains following Houthi strikes on Saudi Arabia
   3. oilprice.com — Oil Prices Rise on Saudi Pipeline Outage and Rising Red Sea Risks
   4. finance.yahoo.com — Oil prices surge past $108 as Saudi pipeline shutdown continues
   5. www.yahoo.com — Oil and gas prices climb after Saudi Arabia closes key pipeline
   6. finance.yahoo.com — Stocks Fall Pre-Bell as Traders Await Fed Rate Decision Amid Rising Treasury Yields, Oil Prices
   confidence 90%
2. 1d ago

   Saudi Arabia shuts East-West pipeline after attacks, spiking oil prices

   Global oil prices are rising after Saudi Arabia shut down its East-West pipeline following attacks. The pipeline is a critical artery that allows crude to reach the Red Sea, bypassing the Strait of Hormuz. This outage threatens a loss of 4% of the global oil supply and deepens an existing energy crisis. While Baghdad confirmed an attack originated from Iraq, other reports link the shutdown to strikes by Iran-backed Houthi rebels from Yemen. Satellite imagery has already confirmed the extent of the damage to the infrastructure.

   Why it matters

   The East-West pipeline reduces Saudi Arabia's reliance on the Strait of Hormuz, a primary maritime chokepoint. Disruption to this route forces more oil through the Strait, increasing vulnerability to regional conflict. Saudi Arabia currently faces mounting threats from Iran and its allies.

   What is confirmed

   • Saudi Arabia shut down its East-West oil pipeline.
   • The pipeline allows crude to bypass the Strait of Hormuz by shipping it to the Red Sea.
   • Oil prices have risen following the pipeline shutdown.

   Still unconfirmed

   • Saudi Arabia has few options as it faces mounting threats from Iran and its allies.

   What to watch next

   • Results of peace talks mentioned by CNBC
   • Official Saudi government statement on the total volume of lost production
   • Verification of whether multiple different groups coordinated the attacks
   Sources used for this update (10)

   1. AP News — Saudi Arabia has few options as it faces mounting threats from Iran and its allies
   2. dw.com — Baghdad confirms attack on Saudi pipeline came from Iraq
   3. Reuters — Saudi pipeline outage threatens loss of 4% of global oil supply
   4. CNBC — Oil prices rise after Saudi Arabia shut down critical pipeline that bypasses Strait of Hormuz
   5. Bloomberg.com — Oil Jumps as Shutdown of Saudi Pipeline Deepens Energy Crisis
   6. CNBC — CNBC Daily Open: Peace talks amid pipeline shocks
   7. The Guardian — Satellite images show extent of damage to major Saudi pipeline, amid global oil supply fears
   8. san.com — Fighting between Houthis and Saudi Arabia drives oil prices soaring
   9. abcnews.com — What does the closure of Saudi-Arabia's East-West pipeline mean for gas prices?
   10. www.nydailynews.com — What the closure of Saudi Arabia’s East-West pipeline could mean for oil flows
   confidence 80%