Saudi Pipeline Closure Threatens Global Oil Flows and Higher Fuel Prices

Saudi Arabia's closure of its East-West pipeline has raised concerns about global energy markets facing even starker shortages due to the ongoing war between Saudi-backed forces and Iran-backed militias in Yemen.

The 1,200-kilometer pipeline is crucial for transporting oil from a processing facility near the Persian Gulf to the Red Sea, where it's loaded onto tankers. The disruption could lead to a loss of around 2.6 million to 4 million barrels of oil per day, which accounts for about 4% of global supply.

Rystad Energy estimates that Saudi Arabia produced nearly 10 million barrels of oil per day in September 2025 but was down to 6 million barrels per day in August. The pipeline's closure could lead to higher prices for fuel and other essentials, affecting households worldwide.