Saudi Pipeline Strikes Send Middle East Crude to $120

Saudi Arabia's East-West oil pipeline, one of the kingdom's most vital export corridors, was struck this week with multiple pumping stations hit, according to U.S. officials cited by CNN. Satellite data from NASA FIRMS and Sentinel had flagged unusual fire activity along the pipeline route just before the confirmed attack.

The strikes jeopardize between 3-4 million barrels per day of Saudi crude exports, and markets responded fast: Brent hit $105 while Middle Eastern grades soared to $120. A weekend meeting of Gulf foreign ministers offered some relief, but traders remain wary of further escalation destabilizing regional supply chains.

Adding to the pressure, supertanker rates on the Middle East-to-China route have rocketed to $800,000 a day after US forces destroyed five Iranian-linked tankers, signaling that even flowing crude is becoming dramatically more expensive to ship.