The Globe and Mail reports in its Tuesday edition that a key Saudi oil pipeline damaged in an attack will be out of service for weeks as repairs are made, while Yemen's Houthi rebels seized more islands along Red Sea shipping routes, further impacting Saudi oil exports.
An Associated Press dispatch to The Globe reports that oil prices rose over 2 per cent due to concerns about global petroleum supplies as Saudi Arabia struggles to export crude amid the Iran war.
Saudi Arabia relies on the East-West pipeline to transport crude from Gulf ports to Yanbu on the Red Sea for export. However, authorities recently shut it down after an attack blamed on drones from Iranian-backed militias in Iraq.
Repairing the damage could take up to five weeks.
The line may partially function during repairs, but officials said they can't predict how much oil will get through.
The pipeline has been moving a weekly average of 2.6 million to four million barrels a day since late August -- a quantity that will be lost to the market if the pipeline's flow stops completely. Rystad Energy says the jump in prices for Brent crude, which reached $109 (U.S.), "is a clear signal that the market is increasingly pricing in a significant loss of supply."
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