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Saudi Arabia has restarted oil exports through its East-West pipeline after repairing damage from drone attacks earlier this month, restoring an important route that allows crude shipments to bypass the Strait of Hormuz, The Wall Street Journal reported Monday.
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The oil market spent Monday morning pricing in a weekend of bad news from the Gulf.
Brent for October and November deliveries gained over 3% and crossed $108 a barrel, while the US benchmark WTI for October rose 2.3% to around $102, both extending last week’s advance after each reclaimed the $100 threshold.
Prices moved following Saudi Arabia’s announcement that its East-West pipeline is temporarily closed after drone attacks.
The line carries crude across the kingdom to Red Sea ports, allowing oil to reach export terminals without passing through the Strait of Hormuz, so its loss removes the main alternative at the moment the strait itself is most dangerous.
That danger was also demonstrated on Sunday, when a merchant vessel was hit in the strait, killing one person and injuring three others, according to Iranian authorities.
Passage through the waterway now works very differently from before the war.
Vessels must obtain Iranian permission to transit, and Tehran is weighing a mechanism to charge service fees. Ships that fail to comply are routinely targeted, while US forces periodically bomb the Iranian coastline to contest Tehran’s claim to control the strait.
Diplomatic efforts have stalled too.
Oman has postponed planned talks between Iran and Gulf states on the future of the waterway, which carries a large share of the world’s seaborne oil trade.
The consequences are extremely visible at American pumps.
The US national average price of diesel crossed $6 a gallon on Friday for the first time in history, up from around $5.85 a week earlier and roughly 60% above the $3.71 drivers paid a year ago.
Petrol is also averaging $4.22 after setting records over the Labor Day weekend.
US President Donald Trump has pointed the finger elsewhere.
Speaking to reporters in Ireland on Sunday, where he was attending the Irish Open at his Doonbeg golf resort, Trump stated Ukrainian President Volodymyr Zelenskyy “has to stop knocking out diesel fuel in Russia.”
“Let him go after targets, but not diesel fuel, because he’s causing a shortage of diesel fuel,” Trump added.
Ukraine has struck more than 20 Russian refinery targets this summer, prompting Moscow to ban diesel exports.
On the flight back from his state visit to Ireland this weekend, Trump reiterated the claim.
However, the supply arithmetic suggests otherwise.
Analysts attribute roughly 800,000 barrels a day of lost diesel supply to Russia’s export ban, against about 1.2 million from disruption around the Strait of Hormuz, according to Lipow Oil Associates.
The wider picture is more lopsided still as crude flows through the strait have fallen from around 20 million barrels a day before the war to about 7 million.
Between them, the two wars have also shut refineries representing around 5 million barrels a day of capacity.
Additional sources • AFP
Saudi Arabia has closed its East-West oil pipeline due to a drone attack linked to Iranian-backed militias in Iraq. This pipeline is crucial for Saudi Arabia, as it allows the country to bypass the congested Strait of Hormuz, which has faced reduced tanker traffic due to an ongoing conflict between the U.S. and Iran. The Saudi Energy Ministry stated that the closure is a precautionary measure; the pipeline typically carries about 4 to 5 million barrels of oil per day, contributing 4% to 5% of global oil supply. The attack caused injuries and damage, but the exact impact on oil exports is still being evaluated.
President Trump, while attending a golf event in Ireland, suggested that Iran was likely responsible for the attack and predicted that oil prices would drop after the upcoming U.S. midterm elections. Recently, oil prices have surged, with diesel prices in the U.S. topping $6 a gallon due to tensions in the region. Reports surfaced that the Houthis, aligned with Iran, seized the strategic Perim Island in the Red Sea.
Crown Prince Mohammed bin Salman of Saudi Arabia reached out to Trump for military assistance against the Houthis, but Washington decided not to intervene directly at that moment, offering intelligence support instead. There were concerns that the attacks on the pipeline and Perim Island could escalate tensions further, especially since diplomatic efforts to resolve the war have stalled.
Iran’s parliamentary committee has stated that negotiations are futile unless the U.S. meets Iran’s demands, particularly concerning recognition of its control over the Strait of Hormuz. The Iranian foreign ministry announced plans for discussions with Gulf states in Oman regarding the strait. Meanwhile, Iraq’s government dismissed a military commander connected to the attack and has closed the Shalamcheh border crossing with Iran as a precaution to prevent further incidents.
The Saudis have not retaliated yet, following a request from Iraq’s prime minister, but they maintain the right to take necessary actions to protect their interests. Saudi Arabia’s oil production has plummeted to its lowest level in over 30 years, partly due to attacks on maritime vessels by Houthi factions. These forces, supported by Iranian guidance, are reportedly planning counterattacks to reclaim territories lost to the Houthis, who have advanced significantly along Yemen’s coast under Iranian direction. The Houthis have claimed that maritime navigation remains safe, except for Saudi vessels, which are subject to a ban.
With information from Reuters
Saudi Arabia has closed a critical oil pipeline after it was attacked by drones launched from Iraq, as conflict in the Middle East widens.
Iraq said it had fired a military commander and launched an investigation after admitting the drone attack on its neighbour’s East-West pipeline had originated in one of its provinces bordering Iran.
The 1,200km (745 mile) pipeline has helped Saudi Arabia – the world’s largest crude oil exporter – bypass the Strait of Hormuz.
The incident comes amid a major advance by the Iranian-backed Houthi rebels in Yemen, putting more pressure on global oil shipping routes as the US-Iran war stretches into its seventh month.
Riyadh on Friday said it had shut the pipeline as a precaution, as satellite images of scorched ground and smoke near the site emerged.
The foreign ministry said the attack resulted in some injuries and damage, which was still being assessed.
The pipeline has been moving 4% to 5% of global oil supply, news agency Reuters has reported, citing ship tracking companies and analysts.
Saudi Arabia has chosen not to retaliate at this stage, its foreign ministry says, following a call from Iraq’s prime minister.
It said the kingdom would “support the efforts of the Iraqi government” to “prevent attacks” launched from the country against neighbouring states.
“The Kingdom of Saudi Arabia affirms that it reserves its right to take all necessary measures to safeguard its sovereignty and security, protect its facilities, and ensure the safety of its citizens and residents,” the statement added.
The Iraqi prime minister’s office in its own statement said the operations commander in the Maysan governorate – a province which borders Iran – had been removed from his post following confirmation the drone attack had been launched from that region.
RIYADH: Gulf and Muslim organizations on Saturday condemned a drone attack on Saudi Arabia’s East-West oil pipeline, expressing solidarity with the Kingdom and warning that the strikes represented a dangerous escalation threatening regional security and vital infrastructure.
The Gulf Cooperation Council (GCC), Muslim World League (MWL), Organization of Islamic Cooperation (OIC), Qatar and Bahrain issued statements early Saturday after several drones originating from Iraqi territory targeted the pipeline in the Riyadh and Madinah regions, causing injuries and material damage.
GCC Secretary-General Jasem Mohamed Albudaiwi condemned the attack “in the strongest terms,” describing it as “a dangerous escalation and an unacceptable threat” to Saudi Arabia’s security, territorial integrity and vital installations. He said the attack was also a “flagrant violation” of international law.
Albudaiwi reiterated the GCC’s categorical rejection of actions targeting Saudi Arabia’s security, stability and national assets. He called on the Iraqi government to intensify its efforts and take “necessary, decisive measures” to prevent its territory from being used as a launchpad for attacks, stop such operations and deter their recurrence.
He reaffirmed the GCC’s “complete and steadfast solidarity” with Saudi Arabia and its support for measures the Kingdom takes to protect its security, sovereignty, facilities, citizens and residents.
Qatar likewise condemned the attack “in the strongest terms,” saying the targeting of civilian and economic facilities was a “flagrant violation of international law” and a dangerous escalation that could undermine regional security and stability.
Qatar’s Foreign Ministry commended what it described as Saudi Arabia’s responsible approach in supporting the Iraqi government’s efforts to prevent its territory from being used to launch attacks against Saudi Arabia and neighboring countries. It expressed full solidarity with the Kingdom and support for measures to protect its sovereignty, security and facilities.
Bahrain’s Foreign Ministry also strongly condemned the attack, describing it as a flagrant violation of international law, the UN Charter and the principles of good neighborliness. It said the targeting of vital civilian facilities threatened the security of energy supplies.
Bahrain affirmed its full solidarity with Saudi Arabia, stressing that the Kingdom’s security and stability were “an integral part” of Bahrain’s own security and stability. It also recognized Saudi Arabia’s right to take all necessary measures under international law to protect its sovereignty, security, facilities, citizens and residents, and expressed wishes for a speedy recovery for those injured.
The Bahraini ministry called for preventing the territory of any country from being used as a launching pad for attacks against neighboring states. It voiced support for Iraq’s efforts to prevent a recurrence and urged the international community to assume its responsibilities in confronting attacks aimed at harming energy security and destabilizing regional security and stability.
The Muslim World League also strongly condemned the strikes. Its secretary-general, Sheikh Mohammed bin Abdulkarim Al-Issa, described the attacks as “treacherous criminal attacks” that violate religious values, laws, international norms and humanitarian principles.
Al-Issa said the league, its bodies and global councils, as well as Muslims under its umbrella, stood in full solidarity with Saudi Arabia in measures taken to deter the attackers, preserve its security and sovereignty, and protect citizens and residents.
The OIC also strongly condemned the attack, Al-Ekhbariyah said in a post on X.
Temporary shutdown
The Saudi Energy Ministry said Friday that the pipeline had been temporarily shut down as a precaution after multiple attacks Thursday morning. Several people were injured and received medical treatment, while emergency and specialized technical teams were deployed to secure the pipeline and assess its condition.
The Saudi Foreign Ministry said the drones were launched from Iraq and that Riyadh had decided not to retaliate at this stage following a request from Iraqi Prime Minister Ali Al-Zaidi.
Saudi Arabia said it would give the Iraqi government an opportunity to take the necessary measures to prevent attacks launched from Iraqi territory against the Kingdom and neighboring countries, while reserving the right to take all measures necessary to protect its sovereignty, security, facilities, citizens and residents.
Iraq condemned attacks threatening Saudi security and stability and ordered an urgent investigation into the militia responsible and parties supporting it. Baghdad said its territory and airspace would not be allowed to serve as a launchpad for attacks against any country.
The pipeline shutdown comes as the East-West route has assumed greater importance amid the wider regional conflict and threats to shipping through the Strait of Hormuz. The roughly 1,200-kilometer pipeline carries Saudi crude from fields in the Kingdom’s east to the Red Sea port of Yanbu, providing an alternative route that bypasses Hormuz.
The attack also followed a series of strikes by Iran-backed Houthi forces in Yemen against Saudi civilian and energy infrastructure. Earlier in the week, attacks targeted Abha, Khamis Mushait, Jazan and Najran, causing fires at oil facilities and temporarily disrupting some operations, according to the Saudi Energy Ministry. Those attacks wounded 73 civilians, including women and children.
The latest pipeline attack has heightened concerns over the security of Saudi Arabia’s energy infrastructure at a time when regional hostilities are threatening multiple routes for Gulf oil exports.
RIYADH: Saudi Arabia temporarily shut down its East-West Pipeline after it was targeted in several attacks in the Riyadh and Madinah regions, the Ministry of Energy said on Friday.
Several people were injured in the attacks, which took place on Thursday morning, and medical treatment, the ministry said in a statement.
Emergency and specialized technical teams were deployed immediately following the attacks to secure the pipeline and assess its safety in coordination with the relevant authorities, the ministry added.
The shutdown was carried out as a precaution and any further developments would be announced as they arise, according to the statement.
The Iran-backed Houthis earlier this week targeted civilian and energy infrastructure targets in Saudi Arabia’s Abha, Khamis Mushait, Jazan and Najran. The attacks caused several fires at oil facilities in the southern region that led to a temporary halt in some operations, the Energy Ministry said.
The Coalition to Support Legitimacy in Yemen condemned the attacks on Saudi Arabia, which wounded 73 civilians, including women and children, vowing to take measures to neutralize the threat.