Saudi pipeline shutdown sparks global oil-supply alarm

Saudi Arabia shut its East-West Pipeline after drone attacks blamed on Iraq-based actors, cutting a key route that moves Saudi crude to Yanbu and feeds western refineries. The outage threatens up to around 4% of global oil supply if prolonged, fueling a rally in Brent and WTI and raising US diesel prices. The disruption compounds regional supply pressures as Yemen’s Houthis have tightened Red Sea shipping lanes, but officials say Saudi could resume some flows while repairs are underway. Yanbu holds about 15 million barrels of crude, roughly four days’ supply at current withdrawal rates, meaning a longer shutdown could sharply worsen prices and market volatility.