Saudi Arabia has temporarily suspended operations of the strategic East-West pipeline, one of the main routes that allows the country to transport crude oil to the Red Sea without passing through the Strait of Hormuz. The decision comes after several attacks on pipeline facilities in the Riyadh and Medina regions, adding to uncertainty over oil flows in the Middle East. According to Saudi authorities, the suspension was taken as a preventive measure to ensure the security of the infrastructure. It has not yet been announced when the pipeline will be restored to operation.
According to the Saudi Energy Ministry, whose data was transmitted by the state news agency SPA, the attacks also caused injuries, while technical teams are inspecting the facilities to assess the damage and their safety. Saudi authorities have also stated that the drones used in the attacks were launched from Iraq.
The East-West Pipeline has a capacity of about 7 million barrels of oil per day and extends from the producing areas in eastern Saudi Arabia to Yanbu, on the Red Sea coast. Its importance is particularly great in the conditions of transportation difficulties through the Strait of Hormuz. Through this land corridor, oil can be sent to Yanbu and then loaded onto tankers in the Red Sea, avoiding passage through the Persian Gulf and Hormuz. According to data reported by the Associated Press, by early June exports through Yanbu had exceeded 5 million barrels per day, turning the terminal into a key point for Saudi exports.
Blow to the tanker market
The suspension of the pipeline also risks directly affecting the maritime transport market. The longer the disruption lasts, the greater the possibility that oil cargoes leaving Yanbu will be reduced and trade flows will change.
If oil were to return to export terminals in the Persian Gulf, it would once again face a major security problem: the Strait of Hormuz.
The situation is further complicated by developments in Bab el-Mandeb, where the presence and activity of the Houthis have added uncertainty to navigation in another strategic maritime corridor.
For the international oil and tanker market, the key factor is now the duration of the suspension. A quick return of the pipeline to service would limit the impact, while a prolonged disruption could cause further changes in shipping routes and demand for maritime capacity.
Thus, Saudi Arabia simultaneously faces uncertainty in Hormuz, risks in Bab el-Mandab, and the temporary disruption of the pipeline that until now served as an alternative route for oil exports.
