Saudi Arabia is looking to boost oil shipments through the Strait of Hormuz after drone attacks took out a key pipeline bypassing the contested waterway.
Saudi stocks suffered their largest intraday fall since April after extensive damage to the East-West pipeline, which is responsible for 4% of global crude supplies. But Saudi attempts to lift Hormuz transits may be limited by a ship shortage; the cost of hiring a tanker on the benchmark Gulf-China route topped $1 million for the first time Monday.
The UK is reportedly considering helping the kingdom fight the Houthis, underscoring Europeās concerns about a worsening energy crisis as it heads into winter. āSaudi Arabia now finds itself on the frontline,ā a Financial Times columnist wrote.