What the closure of Saudi Arabia’s East-West pipeline could mean for oil flows

Saudi Arabia has closed its East-West pipeline following an attack, raising concerns about potential shortages in global energy markets. The 1,200-kilometer pipeline, crucial for transporting oil from the Middle East by sea, could see repairs taking three to five weeks. The closure of this pipeline, which carries about 2.6 million to 4 million barrels of oil per day, could result in a significant loss of supply, amounting to 4% of the global oil supply, according to the International Energy Agency.

Brent crude prices have already surged above $105 a barrel, indicating the market's response to the reduced supply. While the Strait of Hormuz is still an important route for Middle East oil, traffic at the narrow waterway remains low compared to pre-war levels. The Houthis have tightened their control over the Bab el-Mandeb Strait, further affecting shipping in the region.

Experts suggest that while the Hormuz route has partially reopened, it is not a complete solution, and the East-West pipeline remains a vital supply channel.