Saudi Arabia's Energy Ministry announced the shutdown of the East-West crude oil pipeline as a precautionary measure following multiple attacks in the Riyadh and Madinah regions. The attacks resulted in injuries, prompting the deployment of emergency teams to secure the pipeline and evaluate its safety.
This pipeline is critical for Saudi Arabia, allowing it to export crude oil away from the Persian Gulf amid rising tensions between the U.S. and Iran over the Strait of Hormuz. The closure comes at a time when oil prices had recently surged, with Brent and West Texas Intermediate crude surpassing $100 per barrel for the first time in months.
Following the announcement, oil prices fell after a significant rally earlier in the week, reflecting the market's sensitivity to geopolitical developments. While the Saudi government has not attributed the attacks to any specific group, the timing coincides with increased strikes by Iran-allied Houthi militants in Yemen against Saudi targets.
The situation remains fluid, and further updates from the Saudi government are anticipated