What the Saudi pipeline shutdown means for your wallet
Global oil prices have surged past $108 per barrel following the shutdown of a major Saudi Arabian pipeline due to drone attacks and ongoing regional conflicts. The closure of the Bab el-Mandeb Strait by Houthi rebels further threatens global supply chains and energy costs.
Why it matters
Disruptions to critical energy infrastructure in the Middle East have immediate, inflationary impacts on global fuel prices and economic stability.
Hear this story The closure of a critical pipeline in Saudi Arabia, recent activity by Houthi rebels near the Bab el-Mandeb Strait, and the war in Iran impacting the Strait of Hormuz have compounded to push crude oil prices up to over $108 a barrel.
The Saudi East-West oil pipeline moves an estimated 7 million barrels a day across Saudi Arabia to the Red Sea. Saudi Arabia said on Sept. 11 that they were shutting down the pipeline as a precautionary measure after multiple attacks by drones launched from Iraq struck near the pipeline. Reuters estimates the pipeline moves about 4% of the global oil supply .
Satellite imagery captured by Vantor on Sept. 11 shows damage to structures near the pipeline.
According to AAA, diesel has hit a new high on Sept. 14 of $6.23 for the national average.
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