loading
loading
Crude oil prices resumed their upward move in Tuesday's session, with Brent crude futures surging $3.7 per barrel to $109.39 as traders assessed the potential impact on global crude supplies after Saudi Arabia closed a critical pipeline that bypasses the Strait of Hormuz last week. Drones launched from Iraq damaged the East-West Pipeline on Thursday, forcing the Saudi government to shut the key crude oil artery. The pipeline is expected to remain largely out of service for weeks as repairs are carried out, The Associated Press reported, citing two regional officials. The pipeline provides Saudi Arabia with an alternative route to transport oil exports to the Red Sea, allowing it to bypass the Persian Gulf and the Strait of Hormuz, where Iranian attacks have disrupted the movement of oil tankers. Iran effectively closed the Strait of Hormuz — through which around a fifth of the world's traded oil and gas transits in peacetime — in the opening days of the war. Since then, Saudi Arabia has increasingly relied on the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden, for crude oil exports. After the war began, the East-West Pipeline carried a large majority of Saudi Arabia's oil exports, AP reported, citing Rystad Energy, a Norway-based research firm. The disruption to the pipeline could therefore further complicate Saudi Arabia's efforts to move crude to international markets. When Houthi attacks in the Bab el-Mandeb Strait began in late July, most tankers from the port of Yanbu turned north in the Red Sea towards the Mediterranean, sending their cargo through the Suez Canal or an Egyptian pipeline. The pipeline has been carrying an average of 2.6 million to 4 million barrels per day since late August — a volume that could be lost to the market if its flow stops completely, according to an analysis issued Monday by Rystad Energy. Last week, Riyadh notified OPEC's secretariat that its output tumbled by 1.9 million barrels a day to 6.238 million barrels a day, according to a monthly report from the organisation obtained by Bloomberg. That is even lower than the previous wartime nadir reached in April and marks the lowest production figure reported by Saudi Arabia since the beginning of the Gulf War. The pipeline attack has also added to regional tensions. A diplomatic meeting between Iran and Gulf Arab states to discuss the situation in the Strait of Hormuz, originally scheduled for Monday in Oman, was abruptly postponed following the attack. For more than a month, the Houthis have been striking Saudi oil infrastructure and shipping in the Red Sea, increasing pressure on global oil prices and strengthening Iran's leverage in its war with the United States. The Houthis have reportedly seized the strategic Perim Island in the Bab el-Mandeb Strait after taking the port city of Mokha on Yemen's western coast, adding to concerns over the security of another key route for global oil shipments. (With inputs from Bloomberg and AP) Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
document fetched 2026-09-16 02:56 · canonical https://livemint.com/market/stock-market-news/brent-crude-tops-109-as-latest-drone-attacks-iran-tensions-threaten-key-saudi-oil-shipping-routes-11789492468986.html