Saudi Pipeline Shutdown Threatens Global Oil Supply Crunch

Saudi Arabia's east-west oil pipeline has been shut down due to a drone attack on September 11, 2026. The pipeline is crucial for rerouting around 4 million barrels per day of oil exports to the port of Yanbu on the Red Sea, accounting for approximately 4% of global supply.

With the pipeline out of service, Saudi Arabia's oil stocks at Yanbu are running low and will likely be depleted in five to seven days. The country has stockpiles at other ports, including Egypt's Ain Sukhna on the Red Sea and Sidi Kerir on the Mediterranean, but these too will eventually run out if the pipeline remains closed.

The shutdown of the pipeline comes as the global supply crunch worsens, pushing fuel prices to record highs. The International Energy Agency (IEA) predicts that world oil supply will decline by 5.7 million barrels per day (bpd), or about 6%, this year.