economy
Iran attacks on crucial Saudi pipeline and production facilities slash kingdom's oil output
The damage to Saudi infrastructure will only compound the disruption to global oil supplies trigged by Iran's attacks on tankers in the Strait of Hormuz.
TL;DR
- An Iranian attack on Saudi Arabia's East-West pipeline reduced oil throughput by 700,000 barrels per day.
- The East-West pipeline is crucial for exporting crude oil to the Red Sea, bypassing the Strait of Hormuz.
- Attacks on Saudi production facilities have cut output by an additional 600,000 barrels per day.
- The Strait of Hormuz is effectively closed to traffic, with Iran controlling access.
- Approximately 20% of global oil supplies passed through the Strait of Hormuz before recent attacks.
- Gulf oil producers have shut down about 13 million barrels per day of production due to strait disruptions.