Saudi East-West Oil Pipeline Damaged by Drones in Iraq
Saudi Arabia's East-West oil pipeline has been damaged by drones launched by Iran-backed Houthi militia in Iraq. The attack, which occurred on September 11, caused significant damage that is likely to take several weeks to repair.
However, a partial reopening of the pipeline is possible as it consists of two parallel lines. One line could continue operations after safety checks while repairs are made on the other line.
The East-West pipeline plays a crucial role in Saudi Arabia's oil exports, and its damage will have significant implications for global energy markets. The pipeline was used as an alternate route to export oil when Iran closed the Strait of Hormuz, exporting up to 5 million barrels per day.
The Houthis' control over the island of Perim in the Bab el-Mandeb Strait adds another choke point for Saudi Arabia's oil exports, forcing them to either use smaller vessels through the Suez Canal or take a longer route around Africa.
As a result of these developments, Brent oil prices rose more than 4% on September 14, reaching above $109 a barrel. The average U.S. retail price of diesel also reached a new all-time high above $6.23 a gallon.