Saudi Arabia reroutes oil exports after attacks and a key shipping lane closes

Saudi Arabia's main oil company, Aramco, is urgently shifting its crude exports away from the Strait of Hormuz after the vital waterway was blocked. The company is activating its East-West pipeline to full capacity to send oil to Red Sea ports instead. This comes after Iranian drone strikes hit and temporarily shut down the massive Ras Tanura oil refinery on Saudi Arabia's east coast.

Aramco's chief executive warned that a prolonged closure of the Strait of Hormuz would have catastrophic consequences for global oil markets. In response to the supply disruption, the OPEC+ group of oil-producing nations agreed to increase production by a modest amount. Meanwhile, oil prices have surged to multi-year highs as the conflict creates uncertainty over future supplies from the Gulf region.