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Satellite images have revealed the significant damage inflicted on a major Saudi pipeline by a drone attack, raising concerns about the impact on global oil supply. The attack has left a pumping station on the 1,200km pipeline badly charred, threatening to disrupt 4% of the world's oil output. If the pipeline is not restored within days, Saudi Arabia could run out of export stocks, leading to a 4% drop in global oil supply.

This comes as Yemen's Iran-aligned Houthi forces have expanded their control and captured the strategic island of Perim, intensifying the conflict in the region. Brent crude prices surged over 3.4% to $108 per barrel, the highest level since May, exacerbating global fuel price inflation. Saudi Arabia has yet to disclose the full extent of the damage or the timeline for pipeline restoration, which could take up to six weeks according to some estimates.

Without the pipeline's operation, Yanbu port will have sufficient stocks for only five to seven days of exports, presenting a serious risk to global oil supply.