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Saudi Arabia Shuts Major Oil Pipeline as Middle East Energy Risks Escalate

Saudi Arabia has shut its strategic East-West oil pipeline as a precaution after drone attacks that Riyadh says originated from Iraq. The disruption comes as Houthi forces consolidate gains around Yemen’s Bab el-Mandeb Strait, further squeezing alternative export routes while restrictions around the Strait of Hormuz persist.

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Saudi Arabia’s East-West pipeline provides a critical alternative to Hormuz by moving crude toward the Red Sea. Simultaneous threats to the pipeline, Bab el-Mandeb and Hormuz significantly increase risks to global oil supplies, shipping costs and inflation.
Saudi authorities will assess damage and determine when the pipeline can safely restart. Energy markets will watch Houthi activity around Bab el-Mandeb, Iranian-linked groups in Iraq and whether further attacks force Saudi Arabia to reroute additional exports.

Sep 8: Houthi attacks hit Saudi energy facilities

Sep 10: Drones strike the East-West pipeline

Sep 11: Saudi Arabia shuts the pipeline as a precaution

Sep 11: Houthis capture strategic Mayun Island

Sep 12: Global markets assess the risk of simultaneous disruption across key Middle East energy corridors

Next: Focus turns to pipeline restoration and security around Bab el-Mandeb.

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1. apnews.comView Original
2. @CNBCtelevisionView Original