The seven-month-old war in West Asia has now engulfed Saudi Arabia, the world's largest oil exporter, adding to the pressure on global oil supplies. The Strait of Hormuz has been closed since February 28, while a drone attack on the East-West pipeline on September 10 closed the western route for Saudi crude exports. The distruptions sent Brent crude oil prices soaring to $109.4 per barrel; they are at $104.2 now.
The disruption to supplies could intensify further following the signing of the Lindsey O Graham Sanctioning Russia and Iran Act by President Trump. Trump stated at the UN that Iran has a choice between annihilation or a deal after the US Congressional elections. Within seven days, Iran conveyed that it prefers a deal.
