New Attacks in Hormuz and Saudi Test Nerves as War’s Spread Worsens Oil Disruption

Saudi Arabia has temporarily halted its East-West pipeline following a series of drone attacks, escalating the strain on Gulf energy exports. This shutdown, which provides an alternative route for Saudi crude and helps bypass the Strait of Hormuz, is expected to result in a loss of 4% of the global oil supply. The disruption has been intensified by Yemen's Iran-backed Houthis seizing Perim Island in the Bab al-Mandab Strait, a key shipping route in the Red Sea.

These combined actions could further reduce oil exports, potentially driving up prices. Brent crude prices surged above $109 a barrel last week, with a consultant telling The Washington Post that the world is now facing a significant constriction of global energy flows.

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