Saudi Arabia’s Energy Ministry shut down the 750-mile East-West pipeline following drone attacks. These strikes caused fires and damage across the Riyadh and Medina regions. The ministry implemented the closure as a precautionary measure.
The pipeline serves as the primary alternative route to the Strait of Hormuz for Red Sea exports. It recently transported 4 to 5 million barrels of crude per day. This volume represents approximately 4% to 5% of the total global oil supply.
Brent crude futures surged toward $108 per barrel following the announcement. The shutdown disables the kingdom's main contingency route amid existing hostilities in the Bab el-Mandeb strait. This disruption compounds market concerns regarding global energy security.