Oil Prices Rise as Saudi Pipeline Shutdown and New Attacks Raise Supply Fears

Global oil prices moved higher on Tuesday as investors assessed the growing risk of disruptions to crude supplies following attacks on Saudi Arabian energy infrastructure and the shutdown of a key oil pipeline.

Brent crude futures rose by about 1.3% to $107.05 a barrel, while U.S. West Texas Intermediate gained around 1.5% to $102.92 a barrel in early trading. Both benchmarks had already advanced by more than 1% during the previous session.

The latest price increase comes after attacks damaged Saudi Arabia’s East-West Pipeline, an important route that allows the kingdom to transport crude to the Red Sea and avoid the Strait of Hormuz. The pipeline normally handles roughly 4 million barrels of oil per day, equivalent to around 4% of global oil supply.

Fresh attacks add to market anxiety

Concerns were intensified by new attacks carried out by Iran-backed Houthi forces in Yemen. The group launched missiles and drones at Saudi Arabia on Monday, targeting the Khamis Mushait military airbase in the south of the country, according to reports.

The attacks came as Gulf Arab states postponed planned discussions with Iran, raising concerns that diplomatic efforts to reduce tensions could be losing momentum.

The Strait of Hormuz is another major source of uncertainty. Vessel traffic through the strategic waterway has fallen sharply, with fewer than 10 commercial oil-related transits recorded per day over the weekend compared with a recent 10-day average of 14. The route previously carried roughly one-fifth of global oil supplies.

Pressure on Saudi exports

Saudi Arabia’s ability to maintain exports is now closely tied to how quickly the East-West Pipeline can return to service. Traders and buyers cited in reports said the kingdom could begin running short of crude available for export within days if the pipeline remains offline.

A prolonged shutdown could potentially remove as much as 4% of global oil supply, putting additional upward pressure on prices. Analysts say the duration of the outage will be a key factor for the market in the coming days.

The situation is also being watched closely because higher crude prices can feed into transportation, electricity and manufacturing costs, increasing inflationary pressure on economies around the world.

For now, oil markets remain highly sensitive to developments around Saudi Arabia, the Strait of Hormuz and the wider Middle East conflict. Any further damage to energy infrastructure—or signs that the pipeline and shipping routes will remain disrupted for an extended period—could trigger another significant rise in crude prices.