Saudi Arabia shut down its East-West crude oil pipeline following multiple attacks in the Riyadh and Madinah regions.
Saudi Arabia shut down its East-West crude oil pipeline as a precautionary measure after multiple attacks occurred on Thursday morning. The Saudi Energy Ministry reported that the pipeline was targeted in the Riyadh and Madinah regions, resulting in multiple people being injured.
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Emergency teams were deployed to security and assess the safety of the pipeline. The pipeline has a capacity of 7 million barrels per day and serves as a primary route for shifting crude oil exports away from the Persian Gulf toward the Red Sea. This route is used to bypass the conflict between the U.S. and Iran over the control of the Strait of Hormuz. Saudi Aramco CEO Amin Nasser stated that the pipeline has played a larger role in mitigating oil supply disruptions caused by the Iran war than the release of emergency crude reserves. Oil prices broke above $100 per barrel for the first time in months this week as Middle East fighting escalated. Prices closed the week more than 8% higher.