Saudi Arabia shuts East-West oil pipeline after Houthi drone attack, removing up to 5% of global crude supply

Saudi Arabia shut down its 1,200-kilometre East-West pipeline on Friday, 11 September, after a drone attack struck the conduit in the Riyadh and Medina regions. The pipeline had been moving 4 million to 5 million barrels per day, representing roughly 4% to 5% of global oil supply, and its closure compounds an already severe energy disruption in the region. Both Baghdad and Riyadh said the attack originated in Iraq, where Iranian-backed militias operate. Iraq dismissed a military commander who led operations in Maysan province in response. The pipeline had been functioning as a critical bypass route, allowing Saudi Arabia to route crude to the Red Sea and avoid the Strait of Hormuz, where tanker traffic has slowed sharply due to the ongoing US-Iran conflict. Its closure now squeezes supply on both sides of the Arabian Peninsula simultaneously. Houthi rebels in Yemen have separately seized the strategic island of Perim at the mouth of the Red Sea in the Bab el-Mandeb Strait, a chokepoint for global shipping. Brent crude, the international benchmark, has risen above $100 per barrel on the back of these developments, with City AM reporting it approached $108 per barrel on Monday morning. The International Energy Agency said Saudi crude supply had fallen to its lowest level in more than three decades, partly due to Houthi attacks on ships transiting Bab el-Mandeb. Saudi Crown Prince Mohammed bin Salman called US President Trump requesting military assistance, and Washington indicated it would provide intelligence sharing and targeting support but declined direct military action.

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