Saudi Arabia's East-West Pipeline shut down after drone attack, Brent crude nears $110

Saudi Arabia's East-West Pipeline, a critical 1,200km route bypassing the Strait of Hormuz, was shut down following a drone attack launched from Iraq between September 10 and 11. The pipeline, which carries up to 7 million barrels per day, accounts for 30% to 40% of Gulf oil exports. Following the news, Brent crude surged 4.83% to $109.44 on September 14, while WTI rose 4.74% to $104.79. Analysts warn that if the pipeline remains closed beyond the 5-7 day inventory buffer, oil prices could face significant volatility, with repairs potentially taking months. Meanwhile, regional diplomatic talks in Salalah were postponed, and Houthi rebels have reportedly seized strategic positions near the Bab el-Mandeb Strait, further threatening global oil shipping routes.