Gulf foreign ministers canceled a planned meeting with Iran regarding the Strait of Hormuz following a Houthi missile and drone attack on Saudi Arabia’s King Khalid Air Base. The strike followed reports of over 300 Saudi airstrikes on Yemen within five days.
A separate drone attack, attributed to militias in Iraq, disabled Saudi Arabia’s East-West pipeline. This infrastructure is the kingdom’s only export route bypassing the Strait of Hormuz, which handles approximately one-fifth of global daily oil consumption.
The shutdown of the East-West pipeline threatens roughly 4% of the global oil supply. Brent crude prices rose to approximately $107.54 per barrel, while West Texas Intermediate reached about $102.93, marking a nearly 3% increase.
The escalation complicates OPEC+ production strategies, as involuntary supply reductions limit Saudi Arabia's ability to manage output. Traders are reacting to the simultaneous compromise of both primary export channels and the failure of regional diplomatic efforts.
