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[BUSINESS] · Saudi Arabia, Iraq, Yemen, United States · 71 sources

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Saudi Arabia suspends East-West Pipeline after drone attacks FAST-MOVING

Saudi Arabia has suspended operations of its critical East-West Pipeline following drone attacks in the Riyadh and Medina regions. The 1,200-kilometer pipeline, which serves as a vital alternative to the Strait of Hormuz by transporting oil to the Red Sea port of Yanbu, was shut down as a precautionary measure. The attacks have been traced to Maysan province in southeastern Iraq.

Market analysts warn that the disruption could impact up to 4% of the global oil supply, equivalent to approximately 4 million barrels per day. Brent crude prices surged in response to the news, exceeding $108 per barrel and reaching intraday highs near $110.19. There are concerns that Yanbu's existing oil reserves may only sustain exports for five to seven days if the pipeline remains offline.

Repair estimates for the damaged infrastructure vary, with some sources suggesting repairs could take between three to six weeks. While U.S. Energy Secretary Chris Wright expressed optimism that operations could resume soon, the geopolitical situation remains volatile. The shutdown coincides with increased Houthi activity in the Bab el-Mandeb strait, further complicating maritime energy security in the region.

Entities

Aramco · Bab el-Mandeb · Chris Wright · East-West Pipeline · Houthi · Houthi forces · Houthi rebels · Houthis · International Crisis Group · International Energy Agency · Iran · Iraq

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