Saudi Oil Pipeline Damaged in Attacks; Global Prices Spike Amid Iran War

Saudi Arabia's critical East-West pipeline, a vital workaround for shipping oil through the Red Sea instead of the contested Strait of Hormuz, has been severely damaged and shut down following attacks last week. Satellite imagery released on September 15 shows major damage at a pumping station; regional officials told the Associated Press that repairs could take three to five weeks, though some analysts estimate four to six weeks given supply chain constraints. The closure threatens to remove 2.6 to 4 million barrels per day from global markets—equivalent to 3.6% to 4% of world oil supply—according to energy analysts Rystad Energy and Kpler.

The pipeline was attacked on September 11 by what Saudi Arabia says were Iranian-backed militias based in Iraq, followed by renewed Houthi drone and missile strikes on military bases in southwestern Saudi Arabia on September 14. The Houthis, an Iran-backed group fighting a civil war in Yemen, claimed responsibility for striking King Khalid Air Base near Khamis Mushait, damaging aircraft hangars, radar systems, and ammunition depots. The same group said it launched a drone toward Mecca on September 16, which Saudi Arabia's coalition said it intercepted and destroyed; the Houthis denied the allegation. The escalation has prompted Saudi Arabia to halt oil loadings at its Red Sea port of Yanbu and raised urgent concerns about further supply disruptions.

Oil markets responded sharply to the infrastructure damage and closure uncertainty. Brent crude rose to $109.80 per barrel on September 14 and remained near $108 by September 15—a gain of over $3 per barrel in days. West Texas Intermediate crude climbed 1.24% to $102.65 per barrel. Francisco Blanch, head of commodities research at Bank of America Securities, warned that Brent prices could reach as high as $150 per barrel if the pipeline damage proves permanent. Analysts at KCM Trade noted that market participants now treat each new attack or infrastructure damage as an additional supply risk, while remaining sensitive to any signs of restoration to normal pipeline or Strait of Hormuz flows.

The crisis underscores the fragility of Middle Eastern oil distribution during the ongoing Iran-U.S. conflict that began on February 28, 2026. Saudi Arabia built the East-West pipeline in the 1980s as a hedge against potential Iranian disruption of the Strait of Hormuz—through which roughly 20% of global oil once flowed daily. Since the war erupted, traffic through Hormuz has collapsed, and the Red Sea route via Yanbu has become critical. However, Houthi control of new territory along the Bab al-Mandab Strait and repeated attacks on shipping and infrastructure have now compromised both pathways, leaving Saudi Arabia with severely limited export options. The U.S. State Department on September 16 urged American citizens to reconsider travel to Saudi Arabia, citing heightened security risks from drone and missile attacks and designating the Yemen border region as Level 4 "Do not travel."