13.09.202623:06:06UTC+00Brent Jumps on Saudi Pipeline Shutdown

Brent crude climbed toward $108 a barrel—its highest level in four months—after gaining more than 9% last week, as Saudi Arabia shut a major crude pipeline following drone attacks, disrupting a key route that bypasses the Strait of Hormuz.

Saudi Arabia suspended operations on the East–West pipeline as a precaution after Thursday’s attacks and has not yet indicated when flows will resume. At the same time, talks between Iran and several Gulf states on creating a temporary shipping corridor through the Strait of Hormuz were postponed, according to Oman’s Foreign Minister, Badr Albusaidi. Reports indicated that Saudi Arabia had reservations about the plan, while Bahrain said it would not take part.

The closure of the East–West pipeline has underscored its critical role in sustaining energy supplies across the Middle East, especially as the United States and Iran remain deadlocked over control and security of Hormuz. The pipeline, which runs across Saudi Arabia to ports on the Red Sea, has a capacity of about 7 million barrels per day.