Brent crude rises after Saudi pipeline closure
Oil prices jump after Saudi pipeline shutdown jolts supply and lifts crude See what the Hormuz disruption could mean for WTI, Brent, and markets
Oil prices moved higher on Monday after Saudi Arabia shut down an important pipeline that helps move crude outside the Strait of Hormuz.
West Texas Intermediate futures rose 4.2% to $104.23 a barrel, while Brent crude climbed 4.2% to $108.85. The market had already gained about 9% last week as conflict between the U.S. and Iran intensified.
The EastWest pipeline was damaged by drones launched from Iraq, and Saudi officials have not said how severe the damage is or when operations might resume. Analysts said Saudi inventories may soften the impact in the short term, but a longer outage could tighten supply further. A planned regional meeting in Oman on the Hormuz situation was also postponed after the attack.