Saudi Arabia Closes Critical Oil Pipeline Following Drone Attack

Saudi Arabia has temporarily halted shipments after the critical East-West oil pipeline in the Riyadh and Medina regions was hit by a drone attack. While it was determined that the attack originated from Iraq, the closure of the pipeline, which carries 4 to 5 percent of global oil supply, has caused concern in the markets.

Drone Attack and Closure Decision

Saudi Arabia's critical 1,200-kilometer East-West oil pipeline, stretching across the Arabian Peninsula, was the target of drone attacks carried out on Friday. Operated by Saudi Aramco, the pipeline sustained damage in the Riyadh and Medina regions, and casualties were also reported. Following these events, the pipeline was temporarily closed for security reasons.

Investigation Launched from Iraq

While it was determined that the drones used in the attack were launched from Iraq, a comprehensive investigation has been launched into the incident. The office of Iraqi Prime Minister Ali al-Zaidi announced that the attack originated from the Maysan province. The Iraqi government condemned the attack and dismissed the local commander, while no group has claimed responsibility for the attack so far.

Impact on Global Energy Markets

The closure of the pipeline, which carries 4 to 5 million barrels of oil per day and accounts for 4 to 5 percent of global supply, shook the energy markets. Shipments, already disrupted since March due to the closure of the Strait of Hormuz, became even more difficult with this incident. As Brent crude trades above $104 a barrel, analysts state that the closure will place heavy pressure on the markets.