6 minWorld
Saudi Arabia Shuts East-West Pipeline After Drone Attack, Oil Prices Surge
Saudi Arabia closed its East-West pipeline after a drone attack blamed on Iranian-backed militias in Iraq, threatening global oil supplies and pushing Brent crude above $105 a barrel.
Saudi Arabia has shut down its East-West pipeline following a drone attack that it blames on Iranian-backed militias in Iraq, raising fears that global energy markets already strained by the war with Iran could face even sharper shortages. The closure, announced Friday, could take three to five weeks to repair, according to two regional officials who spoke to The Associated Press.
The pipeline is a critical artery for Saudi crude, allowing the kingdom to ship oil to the Red Sea rather than through the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world's oil supply passed before the U.S. and Israel attacked Iran in February. Brent crude, the international benchmark, traded above $105 a barrel on Monday as the market reacted to the loss of supply.
Built in the 1980s amid fears that Tehran would disrupt shipping through Hormuz during the Iran-Iraq war, the East-West pipeline stretches about 1,200 kilometers (746 miles) across Saudi Arabia, carrying oil from a processing facility near the Persian Gulf to the Red Sea port of Yanbu. From there, crude is typically loaded onto tankers bound for Europe via the Suez Canal or for Asia through the Bab el-Mandeb Strait.
For the first six months of the current war, the pipeline was essential to keeping at least some oil flowing out of the Middle East while most tanker traffic in Hormuz remained at a standstill. Rystad Energy said Monday that an average of 2.6 million to 4 million barrels of oil a day moved through the pipeline and out of Yanbu since late August — a volume it warned is now at risk of «disappearing from the market.» Four million barrels per day represents about 4% of global oil supply, according to the International Energy Agency.
Saudi Arabia produced nearly 10 million barrels of oil a day in September 2025, but output had fallen to 6 million barrels per day in August, the IEA said. Janiv Shah, vice president of oil markets for Rystad Energy, noted that the recent jump in Brent prices proves the market is already responding to «a significant loss of supply.» Saudi inventories could sustain exports in the coming days, but that could «change quickly,» Shah added.
The Strait of Hormuz remains a central concern. Before the war, about 20 million barrels passed through the strait each day. Some tankers are again traversing Hormuz, but traffic is well below normal. Maritime data company Lloyd's List Intelligence counted 90 transits in the first week of September, compared with about 130 ships daily before the war.
Yemen's Iran-backed Houthi rebels have also tightened their hold on the Bab el-Mandeb Strait, a vital passage for the southern Red Sea. Analysts at Melius Research estimated that about 3 million barrels of oil a day were moving through Bab el-Mandeb in early September, but noted Monday that «it's likely zero now.» Because of Houthi attacks, most Saudi traffic from Yanbu had been going north to the Mediterranean, either via the Suez Canal or Egypt's SUMED pipeline. But the Houthis have also begun targeting Saudi shipping in the north.
Salvatore Mercogliano, a professor of maritime history at Campbell University in North Carolina, noted that at least Hormuz is still on the table. «If this (East-West pipeline) was the only method for Saudi Arabia to get their oil out it would be absolutely cataclysmic,» he said. «But since the Hormuz route has opened back up — not completely but opened up some — it's not the death knell for Saudi Arabia. They're getting oil out.»
Supply squeezes have already led to soaring prices worldwide, and analysts warn the latest disruptions could bring more pain for consumers in the coming weeks and months. One of the most immediate consequences is the cost of fuel and household energy bills. Countries in Asia and Africa, which rely more heavily on imports from the Middle East, have experienced some of the starkest shocks.
In Nigeria, diesel prices are now 92% higher than in late February, and gasoline prices are up nearly 61%, according to energy tracker Global Petrol Prices. Indonesia has seen diesel rise 87% and gas 38%, while Lebanon has recorded diesel up 80% and gas up 46%. In the U.S., the average price of regular gasoline was nearly $4.32 a gallon on Monday, up almost 45% from $2.98 before the war, according to AAA. Diesel hit another all-time high of $6.23 per gallon, up nearly 66% from the start of the war.
The cost of diesel is particularly consequential because the fuel powers long-haul trucks, delivery networks, and farm equipment, meaning higher prices feed into other goods. «An inflationary spillover is likely,» warned Melius Research analysts on Monday, pointing to the war's squeeze on essentials like fertilizer as well as energy sources. «The diesel crunch is also coming ahead of the U.S. harvesting and heating season.»
