Brent Crude Surges Past $109 After Saudi Pipeline Shut Following Iraqi Drone Strike

Brent crude futures climbed $3.7 to $109.39 a barrel on Tuesday, pushing the benchmark above $109. Traders said the jump reflects worries about global oil supplies after Saudi Arabia shut a vital pipeline that bypasses the Strait of Hormuz. The East-West Pipeline was hit by drones launched from Iraq on Thursday, prompting the Saudi government to close the line. Two regional officials told the Associated Press the damage will keep the pipeline largely out of service for weeks while repairs are carried out. The pipe moves large volumes of Saudi crude away from the congested Hormuz chokepoint, so its loss reduces the flow of oil to market. The decision to shut the line was taken quickly after the damage was confirmed. Saudi authorities said safety of the facility and uninterrupted flow of oil were top priorities. The shutdown came a week after the drone strike, and market participants said the timing could affect upcoming shipping schedules. With the pipeline out, more crude may have to travel through the Strait of Hormuz, a narrow waterway already prone to geopolitical risk. The higher Brent price reflects both the immediate supply squeeze and the uncertainty over how long repairs will take.