Saudi Arabia temporarily closed its East-West pipeline following multiple attacks on Thursday, according to the Ministry of Energy. In a Friday post on X, the ministry called the move precautionary, said several people were injured, and noted that emergency crews are working to make the line safe and evaluate its condition.
This line is a vital workaround to the Strait of Hormuz, sending crude from the Persian Gulf to the Red Sea for loading onto tankers. It can handle about 7 million barrels per day and quickly maxed out when tanker traffic in the Strait of Hormuz nearly ground to a halt. The route has served as a crucial outlet for Saudi exports after the war in Iran upended them, though Houthi activity has also put it under strain.
Regional tensions have flared in recent days. The Yemen-based Houthis claimed they had carried out attacks on Saudi facilities tied to the energy sector in Abha, Najran and Jazan, while the US carried out strikes aimed at Iranian oil tankers. Brent prices were little changed after the Saudi statement, trading near $105 a barrel, after jumping to almost $110 on Thursday as traders weighed the risk to regional supply lines.
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Saudi oil exports slipped to about 3 million barrels per day in August, the lowest level since early 2017 in available records, amid Houthi attacks on ships in the Red Sea. Fuel costs are feeling the heat too: US average gasoline prices are above $4 a gallon for this time of year, and average retail diesel has hit a record $6. Oil barely budged after the ministry's note, with Brent near $105 a barrel, though Thursday's near-$110 print shows how jumpy the market gets when supply routes look shaky.
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