Saudi Arabia shut down its 7 million barrel-per-day East-West Pipeline after a drone attack launched by Iraqi militias damaged a key pumping station. The closure forced Saudi Arabia to cancel some European crude shipments and sent Brent crude prices surging above $109 per barrel. Simultaneously, Iran-backed Houthi rebels seized strategic Red Sea islands, further threatening alternative maritime shipping routes. Saudi Arabia subsequently restored the pipeline's operations, easing immediate supply concerns.
East-West pipeline shutdown
- ▪Saudi Arabia successfully restored operations of its East-West Pipeline, easing immediate global oil supply concerns and softening crude oil prices.
- ▪Saudi Arabia shut down its 1,200-kilometer East-West Pipeline, which has a maximum capacity of 7 million barrels of oil per day, following a drone attack.
- ▪Regional officials briefed on the matter stated that repairs to Saudi Arabia's East-West Pipeline could take three to five weeks, though the pipeline might operate partially during this period.
Drone attacks from Iraq
- ▪The drone strikes on the East-West Pipeline damaged a major pumping facility along the 1,200-kilometer crude oil transport artery.
- ▪Saudi Arabia blamed a drone attack launched on September 11, 2026, from Iraq by Iranian-backed militias for damaging and forcing the closure of the East-West Pipeline.
Houthi Red Sea expansion
- ▪Iran-backed Houthi forces captured the strategic Red Sea islands of Greater Hanish and Lesser Hanish after government-aligned forces withdrew from the archipelago.
- ▪The International Organisation for Migration reported that renewed fighting in Yemen displaced 86,000 people, with more than 2,000 crossing the Bab el-Mandeb Strait to Djibouti.
- ▪Houthi militants seized the key Red Sea port of Mocha and the island of Mayun inside the Bab el-Mandeb Strait, placing rebel-controlled territory approximately 32 kilometers from the US military base in Djibouti.
Oil price surge
- ▪Brent crude futures surged to $109.39 per barrel and US West Texas Intermediate crude rose to $105.83 per barrel following the shutdown of the East-West Pipeline.
- ▪Trade sources reported that Saudi Arabia cancelled some September crude oil deliveries to European customers following the precautionary closure of the East-West Pipeline.
Saudi export route constraints
- ▪The East-West Pipeline allows Saudi Arabia to transport crude oil from its eastern fields to Red Sea ports, bypassing the Strait of Hormuz where Iranian forces have disrupted shipping.
- ▪A Rystad Energy analysis indicated the East-West Pipeline carried an average of 2.6 million to 4 million barrels per day since late August 2026, representing up to 4% of global oil supply.
- ▪Saudi Arabia's crude oil output fell by 1.9 million barrels per day to 6.238 million barrels per day, marking its lowest production level since the Gulf War.
Debatable claims
- ▪Iran directly controls the Houthi military offensive in Yemen
- ▪Saudi Arabia built an east-to-west pipeline across its desert as a strategic alternative to the Strait of Hormuz.
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