Crude oil prices climbed on Sunday after Saudi Arabia shut down its critical East-West pipeline following a drone attack, compounding ongoing supply disruptions caused by the conflict in the Middle East, according to reports from multiple outlets.
U.S. West Texas Intermediate futures rose 2.8% to reach $102.87 per barrel by 6:27 p.m. At the same time, Brent crude, the international benchmark, traded 3.1% higher at $107.87 per barrel as energy markets reacted to the sudden infrastructure closure.
Pipeline Attack and Market Impact
The shutdown was triggered when drones launched from Iraq damaged the East-West pipeline, according to official reports.
https://x.com/badralbusaidi/status/2099224052619735498
Riyadh has not yet disclosed the full extent of the structural damage or established a timeline for when the crude oil artery will reopen.
The 745-mile pipeline spans the Arabian Peninsula and can carry between 4 million and 7 million barrels per day, accounting for roughly a portion of global supply according to ship-tracking companies, analysts, and primary figures. The system connects oil-producing regions near the Persian Gulf to export terminals on the Red Sea coast, serving as a vital bypass for tanker traffic stuck in the Strait of Hormuz.
Shifting Shipping Routes and Houthi Advances
The pipeline closure arrives as Yemen’s Iranian-backed Houthi rebels capture strategic territory along the Red Sea.
The Houthi advances threaten alternative shipping lanes that exporters have relied upon while the Strait of Hormuz remains heavily disrupted. While traffic increased earlier this year as Saudi Arabia sought alternatives to Hormuz, renewed rebel threats have curtailed that activity once again.
Diplomatic Postponements and Official Reactions
The security situation derailed regional diplomacy on Sunday. A diplomatic meeting between Iran and Gulf Arab states scheduled for Monday in Salalah, Oman, to discuss the crisis in the Strait of Hormuz was abruptly postponed.
“In the interests of consensus the regional meeting set for tomorrow in Salalah has been postponed,” Oman’s Foreign Minister Badr Albusaidi said Sunday in a social media post. “We remain committed to fostering dialogue that supports stability and lasting cooperation in our region.”
Meanwhile, political leaders offered differing assessments of the unfolding economic strain. U.S. President Donald Trump insisted that the situation would resolve itself during a statement in Dublin on Saturday after meeting Irish President Catherine Connolly.
Did you know? The East-West pipeline has historically played a more significant role in stabilizing global oil markets than the massive release of strategic reserves led by the United States, according to statements made by Saudi Aramco CEO Amin Nasser during an earnings call.
Frequently Asked Questions
Why did Saudi Arabia shut down the East-West pipeline?
Saudi Arabia closed the pipeline as a precautionary measure after it was struck by drones launched from Iraq, resulting in injuries and physical damage to the infrastructure.
How much oil does the damaged Saudi pipeline carry?
The pipeline has a capacity ranging between 4 million and 7 million barrels per day, representing a portion of the total global oil supply.
What role does the Bab el-Mandeb Strait play in this crisis?
The Bab el-Mandeb Strait connects the southern Red Sea to global markets. As Iran disrupted shipping in the Strait of Hormuz, Saudi Arabia increasingly relied on Red Sea routes and the pipeline, making recent Houthi advances near the strait a severe threat to oil exports.
How have crude oil prices reacted to the pipeline attack?
U.S. West Texas Intermediate futures rose 2.8% to $102.87 per barrel, while Brent crude climbed 3.1% to $107.87 per barrel following the weekend shutdown.
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