Saudi Arabia’s Critical Oil Bypass Comes Under Threat

Houthi attacks on Saudi Arabia's oil infrastructure have sent shockwaves through the oil market, with Brent crude soaring to $105 per barrel and Middle Eastern grades reaching $120 per barrel. The East-West pipeline, capable of transporting 7 million barrels of crude per day, has been critically damaged, potentially reducing Saudi exports by 3-4 million barrels per day.

Despite a weekend meeting of Gulf foreign ministers attempting to stabilize the crude market, the situation remains volatile, with OPEC reducing its 2026 global oil demand growth forecast to 380,000 barrels per day. The Houthi strikes on the East-West pipeline have raised concerns about the vulnerability of Saudi Arabia's oil exports and the potential for further disruptions.