Saudi Pipeline Bypassing Hormuz Restarts, Easing Oil Price Pressure

Saudi Arabia's East-West pipeline has resumed operations after a drone attack halted crude exports through the bypass route around the Strait of Hormuz. The 1,200-kilometer pipeline, which runs from Saudi Arabia's eastern oil fields to Yanbu on the Red Sea, was shut down by the attack on October 10.

The shutdown cut off about 4 million barrels a day of crude exports through the pipeline, equivalent to roughly 4% of global supply. However, with operations now back online, it may help stabilize oil prices that had climbed above $100 a barrel.

Saudi Arabia is also exploring ways to increase crude shipments through the Strait of Hormuz. Tankers are switching off their identification transponders and transferring crude ship-to-ship in relatively safer waters, allowing for increased exports through the strait.