A critical Saudi oil pipeline will remain largely out of service for three to five weeks following an attack, potentially impacting global petroleum supplies and prices. The damage, occurring at a major pumping facility, has forced Saudi Arabia to reroute its oil exports. The pipeline had been carrying an average of 2.6 million to four million barrels per day since late August, according to Rystad Energy.
The attack on the East-West Pipeline, which spans 1,200 kilometers (745 miles) across Saudi Arabia, was blamed on drones from Iranian-backed militias in Iraq. The kingdom has relied on this pipeline to move crude from its Persian Gulf ports to the Red Sea port of Yanbu, from where it is shipped internationally. This pivot became necessary after Iranian attacks stifled shipping through the Strait of Hormuz.
Simultaneously, Yemen's Houthi rebels, also backed by Iran, have intensified their pressure on shipping routes by capturing the strategic Greater and Lesser Hanish islands. These islands are located north of the Bab el-Mandeb Strait, a vital chokepoint connecting the Red Sea to the open ocean and Saudi Arabia's Asian markets. The Houthi advances have also brought them within 20 miles (32 kilometers) of a U.S. military base in Djibouti.
The rebels recently seized the port city of Mokha and the island of Mayun, further consolidating their control over the Bab el-Mandeb Strait. These actions follow a period of Houthi attacks on Saudi oil infrastructure and shipping in the Red Sea since late July, which have contributed to rising oil prices. Brent crude prices had reached $109, signaling increased market concern over supply disruptions.
The disruption to the East-West Pipeline threatens to exacerbate the reduction in Saudi oil production, which was already down significantly. Before the war, Saudi Arabia produced nearly 10 million barrels per day; by August, production had fallen to six million barrels per day.
The ongoing fighting in Yemen has also displaced nearly 94,000 people, with thousands fleeing intensified ground offensives and airstrikes. The World Health Organization reported over 500 conflict-related deaths in Yemen in the past week alone, a sharp increase from the previous week. Aid organizations are struggling to provide essential resources to the displaced populations, with many schools converted into temporary shelters.