Saudi Pipeline Closure Sparks Fears of Energy Shortages and Higher Prices

Saudi Arabia's East-West pipeline has been closed after an attack blamed on Iranian-backed militias in Iraq, raising fears of even starker shortages in global energy markets. The closure could push prices higher for fuel and other essentials.

The pipeline is crucial to getting crude oil out of the Middle East by shipping it to the Red Sea instead of through the Strait of Hormuz, where roughly a fifth of the world's oil supply passed before the US and Israel attacked Iran in February. Two regional officials told The Associated Press that repairs could take three to five weeks.

The pipeline carries 2.6 million to 4 million barrels of oil per day out of the Red Sea port of Yanbu, which is about 4% of the global oil supply, according to the International Energy Agency. Saudi Arabia produced nearly 10 million barrels of oil a day in September 2025 but was down to 6 million barrels per day in August.

The recent jump in Brent prices proves the market is already responding to 'a significant loss of supply,' said Janiv Shah, vice president of oil markets for Rystad Energy. Saudi inventories could sustain exports in the coming days, but that could 'change quickly.'