President Trump said Iran was probably behind the September 10 drone attack on Saudi Arabia's East-West pipeline, which carries 4% to 5% of world oil supply and sent Brent crude toward $110 a barrel. Investigators traced the drones to Iraq's Maysan province near the Iranian border. Trump also said he expects the wider Iran conflict to end soon, with oil prices set to fall as a result.
Drone strikes hit pump stations along Saudi Arabia's East-West pipeline on September 10, and two days later President Donald Trump pointed to Tehran. According to Reuters via Investing.com: "I think they are, probably they are," Trump told reporters in Dublin when asked if Iran was responsible.
Pipeline attack halts a key crude route
The strikes hit the Riyadh and Medina regions, causing injuries and significant infrastructure damage and prompting Saudi Arabia to shut the pipeline down as a precaution. The East-West pipeline spans 1,200 kilometers, linking Saudi oil fields to export terminals on the Red Sea. Under normal operations, it moves an estimated 4% to 5% of the world's oil supply.
Oil spikes as the Strait of Hormuz stays shut
Brent crude briefly touched roughly $110 per barrel in the aftermath of the strikes. The Strait of Hormuz, which normally handles roughly a fifth of global petroleum consumption, has been effectively closed by the ongoing hostilities, forcing a rerouting of oil shipments that the pipeline was meant to help absorb. If the pipeline stays offline for an extended period, supply constraints could push prices higher and keep them there, feeding into gasoline, shipping costs, and consumer inflation.
Iraq walks a tightrope
Investigations traced the drones' launch point to Iraq's Maysan province, near the Iranian border. Iraq dismissed the local military commander responsible for the area but did not retaliate further. Riyadh reportedly asked Baghdad to hold off on escalation, a request Iraq appears to have honored.
Trump talks to Riyadh, predicts a quick resolution
Trump said he had spoken with Saudi Crown Prince Mohammed bin Salman, describing him as a close friend. He added that Yemen's Iran-aligned Houthis had told his administration they would prefer the US stay out of the conflict and were letting most ships through, with one exception.
Separately, Trump predicted the Iran conflict will end soon and that oil prices will subsequently drop.
Sources: Crypto Briefing, Investing.com, Crypto Briefing
Trading involves risk.
Risk Disclaimer
