Saudi Arabia’s pipeline shutdown is turning the regional war into a global oil-supply shock

Saudi Arabia has shut its East-West oil pipeline after drone attacks, removing precisely the piece of infrastructure designed to keep Saudi exports flowing when the Strait of Hormuz is dangerous. The line carries roughly 4mn barrels a day westward to Yanbu on the Red Sea. Reuters estimates that, if it cannot be restarted quickly, as much as 4% of global oil supply could disappear; Saudi stocks available to bridge the outage may cover only about five to seven days. Brent jumped more than $3 this morning to roughly $108 a barrel.