Saudi Arabia Shuts East"West Pipeline After Attack, Lifting Oil Price Risk Premium

Saudi Arabia has temporarily halted operations on its 1,200-kilometer East"West oil pipeline after an attack, a move the government described as a preventive step. The line links major eastern oil fields to the Red Sea port of Yanbu, providing a key export corridor that allows Saudi crude to bypass the Strait of Hormuz. No timetable has been given for restarting flows. The Ministry of Foreign Affairs said the pipeline was struck by drones approaching from the direction of Iraq and added that no retaliation is planned at this stage. At the same time, the Iran-backed Houthi militia has continued targeting Saudi energy infrastructure and is moving toward the Bab el"Mandeb Strait, heightening security risks for Red Sea shipping. Oil markets quickly priced in the renewed supply threat. Brent settled at $104.56 a barrel on Friday, posting a weekly gain of more than 8%. Exports through Yanbu averaged about 2.5 million barrels per day in August, the lowest level since 2013. With alternative export routes constrained, Saudi Arabia's ability to supply crude faces additional pressure. As both the Strait of Hormuz and the Bab el"Mandeb Strait, two of the world's most important energy chokepoints, come under simultaneous risk, traders are reassessing the probability of broader global supply disruptions.