Brent climbs past $108 as Saudi pipeline shutdown tightens oil market

Brent crude surged past $108 per barrel after Saudi Arabia stopped operations on its east‑west pipeline that skirts the Hormuz chokepoint, CNBC reported.

The pipeline, capable of moving roughly 1.8 million barrels a day from the kingdom’s eastern oil fields to the Red Sea, serves as a vital alternative to the narrow Strait of Hormuz, where about 20% of global oil passes. Its closure removes a critical safety valve for exporters.

The decision follows a recent uptick in attacks that CNBC linked to Iran‑aligned militias targeting Saudi energy infrastructure and nearby shipping lanes. The spate of drone and missile strikes has amplified concerns over possible supply interruptions.

Oil markets reacted swiftly; Brent futures rose more than $3 in a single session, pushing the benchmark above the $108 mark. Traders interpreted the pipeline shutdown as a sign of tighter near‑term supply and heightened geopolitical risk.

The Strait of Hormuz, a 21‑nautical‑mile passage between Iran and Oman, has long been a flashpoint for oil transport. When tensions flare, Saudi Arabia often relies on overland routes like the East‑West Crude Pipeline—completed in 2015—to sustain export volumes. The pipeline has previously been used to offset bottlenecks, but it too faces sabotage threats, as seen in incidents in 2022 and 2023.

Analysts caution that the price rally may be short‑lived unless the security environment worsens. Prolonged downtime or an expansion of attacks could push Brent toward $110, squeezing refining margins and raising consumer fuel costs worldwide.

Saudi officials have not provided a timeline for restarting the pipeline, while diplomatic efforts continue to address the underlying security challenges. The episode highlights how quickly regional disputes can translate into global market volatility.