Oil jumps as shutdown of Saudi pipeline deepens energy crisis

Saudi Arabia has temporarily shut down its key East-West oil pipeline in response to aerial attacks, as tensions escalate in the ongoing Middle East conflict. The 1,200-kilometer pipeline, a vital route for global supplies of Middle East oil, has been transporting 4 million to 5 million barrels per day, accounting for 4% to 5% of global supply.

The attack, believed to have originated from Iraq where Iranian-backed militias operate, resulted in some injuries and damage, though the full impact on exports remains unclear. US President Donald Trump suggested Iran was likely responsible for the strikes. Oil prices have surged, reaching a record high of over $6 a gallon for diesel in the United States, as the U.S. and Iran exchange fire on tankers, while Iran-aligned Houthis advance in Yemen, potentially disrupting another major oil route.

Saudi Arabia's Crown Prince Mohammed bin Salman requested US military assistance to combat the Houthis, but Washington has neither directly intervened nor agreed to a dialogue with Iran to end the conflict. The situation has put additional pressure on Iraq's government, which maintains close ties with both the U.S. and Iran.