Saudi Aramco Races to Repair Pipeline Amid Global Supply Disruption

Saudi Aramco is racing to repair its damaged East-West Pipeline and restore about half of its capacity within days, according to Bloomberg. The pipeline's shutdown has caused a significant supply disruption, with traders estimating that Saudi Arabia had only five to seven days of export inventory at Yanbu before its ability to supply global markets would be severely curtailed.

The East-West Pipeline is a critical artery for Saudi oil exports, particularly after the Strait of Hormuz was disrupted following the U.S.-Israeli military campaign against Iran in February 2026. With the pipeline offline, Saudi Arabia has ramped up prompt crude sales routed outside the Strait of Hormuz to move oil through alternative channels.

The extent of the disruption is significant: the East-West Pipeline had been carrying around 4-5 million barrels per day before the drone attacks forced its shutdown, equivalent to 4% to 5% of global oil supply. Spot prices have climbed sharply on the disruption, trading near $105 on Wednesday.