Drone Attack Damages Key Saudi Oil Pipeline, Raising Global Fuel Fears

Saudi Arabia is racing to fix a major oil pipeline after drones attacked it on Friday. The pipeline stretches 1,200 kilometers (about 745 miles) across the Arabian Peninsula to the Red Sea. If the pipeline is not repaired in the next few days, Saudi Arabia could run out of oil to export. That would remove about 4% of the world's total oil supply from the market.

Satellite photos released on Sunday showed a pumping station on the pipeline badly burned and damaged. Saudi Arabia has not yet said how long repairs will take. The country blamed the attack on drones launched by militants in Iraq. Some sources say the damage could take up to six weeks to fix, while others think it could be repaired faster.

The pipeline is very important because it allows Saudi Arabia to move oil without passing through the Strait of Hormuz. That strait, a narrow waterway between the Persian Gulf and the Arabian Sea, has been shut down due to war. Saudi Arabia had been using the pipeline to move around 4 million barrels of oil per day to the port of Yanbu on the Red Sea. With the pipeline offline, experts say Yanbu only has enough stored oil to keep exports going for five to seven days.

Saudi Arabia also has some extra oil stored at ports in Egypt, but those supplies will also run dry without the pipeline running again. Three industry sources familiar with Saudi exports confirmed this timeline. 'Stocks are not full and will ultimately run out without the east-west pipeline resuming operations,' the sources said. This makes the situation very urgent for oil buyers around the world.

The attack comes at a difficult time for global oil supplies. Yemen's Houthi fighters, who are backed by Iran, have been attacking targets inside Saudi Arabia. They recently captured a strategic island in the Bab al-Mandab strait, giving them more control over that key waterway. These moves are part of a blockade the Houthis declared against Saudi oil infrastructure and shipping.

Oil prices jumped sharply in response to the news. On Sunday, the international oil benchmark known as Brent crude rose more than 3.4% to $108 per barrel. That is the highest price since May. Higher oil prices lead to higher costs for gasoline and diesel, which affects everyday life for people around the world.

Diesel prices in the United States hit a record high on Friday, climbing past $6 per gallon on average. This is part of a wider rise in fuel costs that has been pushing up prices on many goods. Inflation — when prices rise across the economy — has already been a major problem in many countries. More disruption to oil supply could make that problem worse.

Hopes for a quick diplomatic solution also faded over the weekend. A regional meeting planned for Monday, where Iranian officials were expected to discuss an agreement about shipping through the Strait of Hormuz, was postponed. Oman's foreign minister announced the delay, saying it was done 'in the interests of consensus.' Iran had been seeking to control which ships can pass through the strait and was considering charging fees for passage.

The conflict in the Middle East is now in its seventh month. It began after the United States and Israel launched attacks on Iran on February 28. U.S. President Donald Trump had predicted the war would be over in four to six weeks, but fighting continues. The ongoing conflict keeps putting pressure on the global oil supply and pushing fuel prices higher.