Saudi Arabia Shuts East-West Oil Pipeline After Drone Attacks

SEATTLE (Oil Monster): Saudi Arabia has temporarily halted operations on its strategic East-West crude oil pipeline after a series of drone strikes. The development has reportedly raised fresh concerns over global oil supplies and prices.

The Saudi Ministry of Energy announced the shutdown on September 11, a day after attacks were reported in Riyadh and Medina provinces. The 5-million-barrel-per-day pipeline transports crude from Saudi Arabia’s eastern oil fields to Yanbu on the Red Sea, providing an alternative export route that bypasses the crucial Strait of Hormuz.

Brent crude briefly surged to about $110 per barrel following news of the attacks before easing to roughly $105 later in the day. However, the benchmark ended above $100 for the first time since May.

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According to Saudi officials, several drones launched from Iraq caused injuries and property damage. Satellite observations indicated fires near pumping facilities. Meanwhile, Saudi Arabia described the pipeline closure as a precautionary measure.

Saudi Arabia has so far refrained from retaliatory action after Iraqi Prime Minister Ali al Zaidi requested time to address attacks originating from Iraqi territory. Baghdad has launched an investigation, which has resulted in the removal of several senior security officials in Maysan province. The latest incident follows escalating regional tensions.

Saudi Arabia’s pipeline shutdown exposes the vulnerability of alternative crude export routes amid continuing Middle East tensions.