Fuel Prices in Czechia Near Record Highs After Drone Attack on Saudi Pipeline

Fuel prices in Czechia are once again approaching record levels. According to CCS, a company that tracks fuel price trends, a liter of diesel averaged 47.91 crowns on Thursday — nearly matching the price seen this spring following the US and Israeli strikes on Iran.

The latest spike was triggered by a drone attack carried out by Yemen's Houthi rebels on the East-West pipeline, which runs across the entire Arabian Peninsula to the Red Sea. On Friday, Saudi Arabia was forced to halt the pipeline's operations.

Why the Pipeline Matters So Much

Over the past six months, this route has played a crucial role, allowing oil to bypass the Strait of Hormuz, where traffic has been paralyzed by the ongoing war. As recently as February, roughly one-fifth of the world's oil consumption passed through the strait.

The East-West pipeline carried around four million barrels a day — about 4% of global supply. According to Reuters sources, major repairs could take five to six weeks.

At current export rates, oil reserves at the port of Yanbu on the Red Sea coast will last only five to seven days, the agency estimates. Saudi Arabia does have additional reserves at the Egyptian ports of Ain Sokhna and Sidi Kerir, but these too are unlikely to offset the pipeline shutdown for long.

Houthis Now Control Both Key Straits

Last week, the Iran-backed Houthis seized the strategic port of Mokha, followed by the island of Perim in the Bab-el-Mandeb Strait. Alongside the Strait of Hormuz, this passage is one of the two main routes for shipping Middle Eastern oil to global markets. As a result, Saudi Arabia now faces disruptions on both sides of the Arabian Peninsula.

Before the war, the Middle East supplied roughly 22 million barrels of oil per day to global markets. According to industry sources, only 6 to 9 million barrels currently pass through the Strait of Hormuz.

Saudi Arabia's own oil output is also declining. Riyadh told OPEC that the country produced just 6.2 million barrels a day in August — down from 10.9 million in February. The International Energy Agency expects global oil supply to shrink by 5.7 million barrels a day this year, a drop of roughly 6%.

Source: novinky.cz