Saudi Pipeline Shutdown Narrows Export Options Amid Hormuz Constraints

Saudi Arabia's East-West Pipeline, also known as Petroline, has been shut down temporarily after attacks on sections of the line in Riyadh and Madinah regions. This move narrows the Kingdom's options for exporting crude oil, adding to logistical pressure caused by continued restrictions on oil flows through the Strait of Hormuz.

Crude oil and other petroleum liquids flowing through Hormuz have declined from an average of 21.6 million barrels per day in the fourth quarter of 2025 to 4.9 million bpd in the second quarter this year, a roughly 77% decline. The East-West Pipeline carries crude from Saudi Arabia's eastern production centers to the Red Sea port of Yanbu.

Saudi Energy Ministry said the pipeline was shut down as a precaution after multiple attacks on sections of the line. Crude transported through Petroline to Yanbu can reach Mediterranean and European markets via the Suez Canal and Egypt's SUMED pipeline, while shipments bound for Asia move south through Bab el-Mandeb Strait.

Afshin Javan, an energy economist and former OPEC governor, said Saudi Arabia still has considerable operational flexibility. However, he estimated that 3.5-5 million bpd of potential Saudi export capacity is exposed due to the pipeline outage, with a prolonged shutdown combined with continued Hormuz constraints potentially resulting in a disruption of around 3-4 million bpd.