Drone Attacks Shut Down Saudi Pipeline

Saudi Arabia's East-West pipeline has been shut down following drone attacks on the vital crude conduit, threatening to remove up to 4% of global oil supply from international markets.

The closure adds fresh pressure to an already strained energy system as disruptions to the Strait of Hormuz and Red Sea shipping routes intensify. The pipeline, which transports around 4-5 million barrels per day, is a critical alternative export route for Saudi Arabia amid the war-related disruption in the Strait of Hormuz.

The attacks took place in Riyadh and Medina regions, with Saudi Arabia's Energy Ministry stating that the pipeline had been stopped as a precaution. The strikes caused injuries and material damage, according to satellite imagery showing smoke rising from an area along the pipeline south of Medina.

Existing stocks at Yanbu could be depleted within five to seven days if the pipeline remains offline, with Egypt's Ain Sukhna and Sidi Kerir ports providing some relief but limited supplies. A prolonged shutdown would increase the risk of actual supply losses, potentially tightening the market further at a time when buyers are already competing for fewer available barrels.