Oil prices rise after drone attacks shut down Saudi Arabia’s East-West pipeline
Summary
Oil prices rose above $107 a barrel after Saudi Arabia closed its east-west oil pipeline due to drone attacks. The attacks were carried out by Yemen’s Houthi forces, causing concerns about oil supply and increasing energy costs worldwide.Key Facts
- Brent crude oil prices rose to $108 a barrel, then settled at $107.7, up 3% on the day.
- Yemen’s Houthi forces, supported by Iran, launched drone attacks and took control of the Perim island near a key shipping route.
- Saudi Arabia closed a major oil pipeline following the attacks, risking reduced oil exports.
- Gulf states delayed talks with Iran about a temporary shipping lane through the Hormuz strait, a key oil and gas route.
- UK gas prices rose by 5% to their highest level since December 2022.
- Oil prices had previously peaked at $126 in April before falling, then rose again after US-Iran tensions increased.
- Saudi Arabia’s oil output in August was at its lowest since 1990.
- Rising energy prices are contributing to higher inflation worldwide, affecting decisions by central banks in the US, UK, and Japan.
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