European Union leaders are weighing urgent steps to contain another rise in oil and fuel prices after an attack on Saudi Arabia’s oil infrastructure deepened market concerns. According to Euronews, some deliveries from Saudi Arabia are being delayed or canceled as tensions escalate in the Middle East.
After the attack by the Houthis and Iraqi forces, Saudi Arabia was forced to temporarily shut the 1200-kilometer East-West pipeline. The route is one of the main alternatives to the Strait of Hormuz, so any disruption to its operations heightens risks for the global oil market.
The disruption could affect as much as 4% of global oil supplies, the report says. The threat is more acute because Saudi oil production had already fallen significantly in August.
Markets have responded with higher prices. Brent crude has climbed above $113 a barrel, adding fresh pressure on both consumers and European governments.
For France and Italy, rising energy costs are becoming a domestic political issue as voters continue to judge governments by purchasing power. In France, higher energy and fuel prices are already fueling consumer anxiety, while inflation reached 2.7% in August, with energy remaining a key driver.
Italy is facing a similar problem. Inflation there rose to 3.3% in August, while gasoline and diesel prices increased sharply. Against this backdrop, European governments are assessing how long supply disruptions could last and what impact they may have on the broader economy.
