Oil prices rise after drone attacks shut down Saudi Arabia’s East-West pipeline

AI desk brief

Oil surged above $107/bbl after drone attacks forced Saudi Arabia to close its East-West pipeline, with Brent touching $108 before easing to $107.7, up 3% on the day. UK gas also jumped 5% to 208.73p/therm, its highest since December 2022, as traders warned Saudi export stocks could run down within days if the pipeline stays shut.

The article frames the move as a broader Middle East supply shock: attacks on Saudi energy infrastructure, threats to shipping through Bab al-Mandab/Hormuz, and renewed Houthi disruption risks. The key precious-metals transmission is inflation and rates — higher energy costs are lifting inflation across major economies, increasing the chance of a more hawkish or delayed central-bank response in the US, Japan and UK, which is supportive for gold on a real-yields basis if policy expectations stay elevated.