Saudi Arabia has resumed oil exports through its major East-West Pipeline after completing repairs following drone strikes on September 10. The restart restores a critical alternative shipping route as maritime traffic through the Strait of Hormuz remains exposed to ongoing risks and attacks amid the war with Iran.
East-West Pipeline Returns to Half Capacity Following September Drone Strikes
State-run Saudi Aramco tested the East-West Pipeline last week, building pressure to prepare for resuming meaningful flows by the weekend, according to Bloomberg. Deliveries through the crucial conduit reached roughly half the pipeline’s capacity as loading operations resumed at the Red Sea port of Yanbu.
The pipeline possesses a total capacity of 7 million barrels per day. Approximately 2 million barrels per day normally supply domestic refineries along the Kingdom’s western coast, while the remaining capacity is reserved for exports. By the end of last week, the system reached about half of its total capacity, facilitating the loading of several massive oil tankers off the western coast.
Mitigating Global Price Pressures as Strait of Hormuz Risks Persist
The return of westward shipments provides a vital alternative route for Saudi crude, which the Kingdom had heavily relied upon during the conflict with Iran. These westward shipments served as a lifeline for global markets by helping limit stark price increases. Oil traded near $107 a barrel as the United States and Iran remained divided over a diplomatic resolution to the Middle East conflict.
While Saudi Arabia pushed total oil exports to high levels in September by utilizing the Strait of Hormuz—with most shipments heading to Asian buyers—that maritime path remains hazardous. Vessels face occasional attacks as the war approaches its seventh month. Meanwhile, market buyers scrambling to secure supplies received relief as the Red Sea export route reopened, though some European clients had previously been informed they would receive no barrels under term contracts for the upcoming month.
Broader Security Pressures Across Red Sea and Gulf Corridors
The restoration of the pipeline comes against a backdrop of wider regional friction. The Red Sea corridor near the western terminus of the pipeline at Yanbu has faced heightened threats from Yemen’s Houthi movement, which intensified attacks this month against energy facilities in the Kingdom’s southwest and at the Red Sea port. Saudi authorities responded with multiple warnings covering several cities, including Riyadh, Jazan, and Mecca.
Market traders are closely monitoring how much crude Saudi Arabia continues to pump through the Strait of Hormuz once the East-West line returns to its full 7-million-barrel capacity. Neither Saudi Aramco nor the Saudi Ministry of Energy immediately responded to requests for comment regarding the resumption of pipeline flows.
