🔻Concerns about energy supply after the attack in the Strait of Hormuz and the shutdown of the Saudi pipeline have increased

Reports of an attack on a vessel in the Strait of Hormuz and the temporary shutdown of a major Saudi oil pipeline have raised fears of further disruption to energy supply.

In recent months, the pipeline has moved four to five million barrels of oil per day despite the Strait of Hormuz being largely closed; equivalent to four to five percent of global supply.

On Saturday, Saudi Arabia temporarily shut down the East-West pipeline following a drone attack. Baghdad and Riyadh said the attack’s origin was Iraq, where groups backed by Iran operate.

At the same time, the United Kingdom Maritime Trade Operations Organization announced that a vessel was hit by a projectile while transiting the Strait of Hormuz.

Following these developments, concerns about a further rise in energy prices have intensified; Brent crude oil prices crossed $100 per barrel again over the past week.