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Saudi Arabia shuts East-West pipeline after drones
BBC News··12 Sept
Saudi Arabia has shut its East-West oil pipeline after drones from Iraq struck the route. Iraq said the attack came from a border province and removed the Maysan commander. The line helps Saudi exports bypass the Strait of Hormuz. Riyadh closed the line after injuries and damage. Reuters says the pipe moves 4% to 5% of global oil supply.
Prism
What It Means For You
- A pause on a Hormuz bypass route narrows options for Gulf crude moving to market.
- Fuel and freight costs can shift when 4% to 5% of global supply faces disruption.
- Shippers already watching Red Sea risk also face Houthi advances on Yemen's coast.
What's Happening
- Saudi Arabia said it would not retaliate for now after a call from Iraq's prime minister.
- Iraq ordered an investigation after confirming the launch site inside its territory.
- Brent traded near $105 a barrel after the Saudi statement, Livemint reported via Bloomberg.
Why The Line Matters
- The conduit became a lifeline after tanker traffic in the Strait of Hormuz nearly stalled.
- Livemint cited about 7 million barrels a day of capacity on the route earlier this year.
- The Gulf Cooperation Council condemned the strike as a threat to Saudi facilities.
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