Saudi Oil Exports Disrupted Amid Escalating Middle East Conflict
The escalating conflict in the Middle East has dealt a significant blow to Saudi Arabia's oil export capabilities. Drone attacks attributed to Iran-backed militias struck the East-West pipeline, knocking out an alternative route that had been keeping Saudi crude flowing to global markets.
The pipeline, which can move up to 7 million barrels per day, was running at approximately 4 million bpd before being severed. Oil loadings at Yanbu have been suspended entirely, and the terminal's remaining inventory is projected to last only 5-7 days.
Brent crude jumped to $108 per barrel in the aftermath, its highest level since May 2026. The price tag reflects a market staring at the possibility that roughly 4% of global oil supply could stay offline for weeks.