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Oil Pipeline Shut After Drone Attacks
14 Sep
Summary
- Saudi Arabia's East-West pipeline closed due to drone attacks.
- Houthi rebels seized Perim Island in the Bab al-Mandab Strait.
- Potential loss of 4% of global oil supply threatened.
Multiple drone attacks recently led Saudi Arabia to shut down its crucial East-West pipeline. This vital infrastructure had provided a workaround for the kingdom's crude oil, enabling it to bypass the Strait of Hormuz. Its closure poses a threat to approximately 4% of the global oil supply.
Adding to the pressure on energy exports, Yemen's Iran-backed Houthis seized Perim Island. This strategic move impacts the Bab al-Mandab Strait, threatening another major shipping route through the Red Sea. These combined disruptions could significantly squeeze oil exports, potentially driving prices higher, as seen with Brent crude surpassing $109 a barrel last week.
The world is now facing an increasing constriction of global energy flows, with two critical maritime arteries simultaneously under threat. This situation highlights the fragility of energy supply routes and their susceptibility to geopolitical events.
