Brent crude tops $109 as latest drone attacks, Iran tensions threaten key Saudi oil shipping routes

Brent crude futures surged by about $3.7 per barrel to $109.39 after drone attacks from Iraq damaged Saudi Arabia's East-West Pipeline, forcing its shutdown for weeks of repairs. The pipeline had been carrying an average of 2.6 million to 4 million barrels per day since late August, and its loss could remove significant volumes from the global market, compounded by Iranian disruptions to the Strait of Hormuz and Houthi attacks in the Bab el-Mandeb Strait. Saudi Arabia notified OPEC that its output fell by 1.9 million barrels a day to 6.238 million barrels a day, the lowest reported since the Gulf War began, intensifying supply concerns and inflationary pressure for oil-importing economies such as India.