Saudi oil pipelines attacked and shut down, WTI and Brent crude prices surge over 3%

Asian morning session: Both WTI crude oil and Brent crude oil saw their intraday gains expand to over 3%. Last Thursday, a drone launched from Iraq attacked Saudi Arabia’s east-west oil pipeline, forcing the Saudi government to shut down this key crude oil artery. Riyadh did not disclose the extent of the pipeline damage or the duration of the shutdown. In addition, a diplomatic meeting originally scheduled for Monday in Oman between Iran and Gulf Arab countries to discuss the situation in the Strait of Hormuz was suddenly postponed after the pipeline attack. This Saudi pipeline has a daily transport capacity of 7 million barrels, playing a crucial role in alleviating severe oil supply disruptions caused by Middle East conflicts. According to the UK Maritime Trade Operations Centre, security in Hormuz remains extremely precarious, as another oil tanker was attacked on Sunday, resulting in a serious fire onboard.