Saudi Arabia has closed its East-West pipeline, a strategic alternative to the Strait of Hormuz for oil exports, after a series of attacks that occurred on Thursday.
According to the Saudi Ministry of Energy, the interruption was adopted as a precautionary measure. The attacks left people injured, and emergency teams are working to ensure the security of the infrastructure and assess potential damage.
According to the kingdom’s Foreign Ministry, several drones launched from Iraq struck sections of the pipeline in the Riyadh and Medina regions.
Clashes in the Middle East have intensified in recent days. The Houthi rebels from Yemen claimed to have attacked Saudi energy facilities in Abha, Najran, and Jazan, while the United States carried out offensives against Iranian oil tankers.
The East-West Pipeline has become a crucial route for Saudi exports since the escalation of the war involving Iran. With a capacity to transport up to 7 million barrels per day, the facility quickly reached its maximum capacity this year, after tanker traffic through the Strait of Hormuz was severely hampered.
The pipeline carries oil from the Persian Gulf to the Red Sea, enabling loading onto ships without the need to pass through Hormuz. In recent months, however, this route has also come under pressure due to attacks by Iran-backed Houthi forces.
According to Gregory Brew, a geopolitical analyst at Eurasia Group, the attacks show that Iran and its allies maintain the capacity and willingness to strike energy infrastructure in the region.
“It is a very clear demonstration that Iran and its allies have both the capability and the willingness to attack regional energy infrastructure, and that this infrastructure is vulnerable to drones and ballistic missiles,” he said.
Despite the closure of the pipeline, the market reacted moderately. Brent crude traded around $105 per barrel after the announcement. On Thursday, the commodity approached $110 amid fears about the impact of the military escalation on the global energy supply.
“The size of the disruption has already been priced in,” Brew said.
Saudi Arabia’s oil exports fell to about 3 million barrels per day in August, the lowest volume since early 2017, according to data cited by Bloomberg. The drop occurred amid attacks on vessels in the Red Sea carried out by the Houthis.
At the same time, the flow of oil through the Strait of Hormuz remains limited. The United States has imposed a blockade on shipments from Iranian ports, while Tehran continues to threaten vessels transiting the region.
Data from consulting firm Vortexa show that about 1 million barrels per day of petroleum derivatives are currently crossing Hormuz, well below the around 4 million barrels per day recorded before the conflict.
Supply constraints have pressured not only crude oil but also fuels. In the United States, gasoline is selling for an average above $4 per gallon, while diesel has reached a record $6 per gallon.
Another factor of concern is the gradual depletion of the mechanisms that helped cushion the energy shock at the start of the war. U.S. oil inventories have fallen significantly, and much of the strategic reserves released by governments around the world has already been absorbed by the market.
Meanwhile, Houthi forces advanced this week along the Red Sea coast toward the Bab el-Mandeb Strait, while continuing drone and missile attacks against Saudi Arabia. The offensive has already led the kingdom to suspend operations at some energy facilities.
According to Fernando Ferreira of the Rapidan Energy Group, the Houthis’ advance places Riyadh before a difficult choice: widen a military campaign that for years has failed to defeat the group, or accept an ever-greater influence by the rebels over one of the world’s most important shipping routes.
“Riyadh is in a difficult position,” he said. “As the United States maintains the blockade and is able to escort more tankers out of the region, Iran is likely to escalate attacks on Gulf energy facilities.”
© 2026 Bloomberg L.P.
