Business & Finance
Saudi pipeline closure is a brief interruption that will last days, U.S. Energy Secretary tells CNBC
Key Points
Saudi Arabia's critical East-West crude oil pipeline will start operating again "very soon," U.S. Energy Secretary Chris Wright told CNBC in an interview Tuesday. "This will be a brief and temporary interruption," Wright told CNBC's Morgan Brennan in Houston. "It will be measured in days."
Saudi Arabia's critical East-West crude oil pipeline will start operating again "very soon," U.S. Energy Secretary Chris Wright told CNBC in an interview Tuesday.
"This will be a brief and temporary interruption," Wright told CNBC's Morgan Brennan in Houston. "It will be measured in days."
The Saudis closed the pipeline late last week after it sustained damage in a drone attack launched from Iraq. Wright said Iran-backed proxy groups were responsible for the strike.
Riyadh has relied on the pipeline to shift crude oil exports to the Red Sea as the U.S. and Iran battle for control over the Strait of Hormuz.
The Saudis are now shifting some oil exports back through Hormuz with U.S. military support while the pipeline is down, Wright said.
U.S. crude oil prices have gained more than 5% this week to trade above $105 per barrel, as the market tries to assess how big a supply disruption the pipeline outage will cause.
This is a developing story. Please check back for updates.