East-West Pipeline Shutdown Threatens Global Oil Supplies
Saudi Arabia's East-West pipeline was damaged in an attack by Iranian-backed militias in Iraq, leaving oil exports vulnerable to disruption. The pipeline carries crude from Saudi Arabia's processing facility near the Persian Gulf westward to the Red Sea, bypassing the Strait of Hormuz. With repairs expected to take three to five weeks, global energy markets are bracing for even starker shortages and higher prices.
The East-West pipeline was built in the 1980s amid fears that Iran would disrupt shipping through Hormuz during the Iran-Iraq war. Saudi Arabia produced nearly 10 million barrels of oil a day in September 2025, but production dropped to 6 million barrels per day in August. Rystad Energy estimated that an average of 2.6 to 4 million barrels of oil a day moved through the pipeline and out of the Red Sea port of Yanbu since late August.
The closure of the East-West pipeline comes as tensions with Iran continue to escalate, with Yemen's Houthi rebels seizing islands along key Red Sea shipping routes and targeting Saudi shipping in the north. The Strait of Hormuz is still seeing limited tanker traffic, but analysts warn that supply shocks and higher prices could pile up. Brent crude traded at over $105 a barrel on Monday.