Saudi Arabia has shut down its East-West pipeline following a drone attack blamed on Iran-backed militias in Iraq, with repairs expected to take three to five weeks. The pipeline, built in the 1980s over fears Iran would close the Strait of Hormuz, carried between 2.6 and 4 million barrels of oil per day, roughly 4% of global supply. Brent crude traded above $105 per barrel Monday. Yemen’s Iran-backed Houthi rebels have also seized islands along key Red Sea shipping routes, rendering the Bab el-Mandeb passage virtually impassable. Prices have surged worldwide, with U.S. gasoline averaging $4.32 per gallon, up 45% from pre-war levels, and diesel hitting $6.23 per gallon, up nearly 66%.
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