Saudi Arabia halts East-West pipeline after drone strikes

Saudi Arabia has temporarily suspended its East-West oil pipeline following several drone strikes, which damaged portions of the pipeline and heightened concerns about crude exports. The Energy Ministry announced the shutdown as a precaution following attacks on September 10 in the Riyadh and Madinah regions, resulting in injuries to several individuals.

Emergency and technical teams were dispatched to secure the system and evaluate its condition. Iraq has admitted that the drones originated from its territory, initiating an investigation. Saudi officials have chosen not to retaliate at this time, but have reserved the right to take necessary protective measures. Iraq's Prime Minister has requested time to prevent additional attacks from Iraqi territory.

No specific group has claimed responsibility for the pipeline strikes. While Iran has not publicly identified a perpetrator, US President Donald Trump suggested Iran as a possible culprit. The shutdown of the roughly 1,200-kilometre pipeline, which transports crude from Saudi Arabia's eastern oilfields to the Red Sea port of Yanbu, has raised concerns as tanker movements through the Strait of Hormuz and Red Sea have been severely constrained.

The US Energy Information Administration states that the pipeline can carry up to 7 million barrels per day, with approximately 5 million barrels available for exports and the remainder serving domestic requirements. Oil shipments through Hormuz decreased to 4.9 million barrels daily in the second quarter, while volumes through Bab el-Mandeb rose to 8.1 million during the same period.

Brent and US West Texas crude prices settled above $100 per barrel, reflecting market sensitivity to potential supply disruptions and the risk of further attacks. Saudi Arabia's crude supply had already declined prior to the pipeline shutdown, with the International Energy Agency estimating August supply at about 6 million barrels per day, the lowest level in over three decades.