Key facts
- A crucial Saudi oil pipeline will be out of service for weeks due to damage from a drone attack.
- Repairing the pipeline, including a major pumping facility, could take three to five weeks.
- The East-West Pipeline runs 745 miles across Saudi Arabia, connecting Gulf ports to the Red Sea port of Yanbu.
- The pipeline has been moving an average of 2.6 million to 4 million barrels of crude per day.
- Yemen's Houthi rebels seized the islands of Greater and Lesser Hanish, located near the Bab el-Mandeb Strait.
- Oil prices gained more than 2% amid concerns over global petroleum supplies.
A vital Saudi oil pipeline, the East-West Pipeline, will remain largely out of service for weeks as repairs are undertaken following a drone attack. Two regional officials stated that the damage, including to a major pumping facility, could take three to five weeks to fix. The pipeline, which spans 745 miles across the country, is crucial for moving crude oil from Saudi Arabia's Persian Gulf ports to the Red Sea port of Yanbu for export. Saudi Arabia has blamed Iranian-backed militias in Iraq for the Thursday attack.
The disruption comes as Yemen's Houthi rebels have intensified their actions, seizing more islands along Red Sea shipping routes, including Greater and Lesser Hanish, which are located near the Bab el-Mandeb Strait. This strategic strait connects the Red Sea to the open ocean and is a key chokepoint for global trade. The Houthis had previously seized the port city of Mokha and the island of Mayun.
Oil prices reacted to the news, with Brent crude reaching $109 and gaining more than 2% amid growing concerns about global petroleum supplies. The pipeline has been moving an average of 2.6 million to 4 million barrels per day since late August, a volume that will be lost to the market if the flow stops completely, according to Rystad Energy. The Iran war has previously forced Saudi Arabia to shift exports away from the Persian Gulf due to threats in the Strait of Hormuz, increasing reliance on the East-West Pipeline.