Global oil prices surged past $108 a barrel as Saudi Arabia’s East-West crude pipeline remained shut for a second week, deepening fears of a prolonged supply disruption in one of the world’s most important energy corridors.
The pipeline, which normally carries millions of barrels of crude per day from oil fields in the Eastern Province to the Red Sea port of Yanbu, allows Saudi Arabia to export oil without routing tankers through the Strait of Hormuz. It was shut down after drone strikes triggered fires along the route, and repair crews have yet to fully restore operations.
With the alternate route offline, traders are increasingly worried that any escalation threatening shipping through the Strait of Hormuz — a chokepoint through which a large share of the world’s seaborne oil trade passes — could send prices sharply higher. Brent crude is now trading near its highest level in four months.
Energy analysts said the market is pricing in a growing risk premium tied to regional tensions rather than an immediate shortage, but warned that a prolonged outage could tighten global supply heading into the winter demand season. Governments and refiners are monitoring the situation closely, with some already exploring alternative sourcing to cushion against further price spikes.