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Concurrently, WTI futures climbed 2,9% to $102,93 per barrel, driven by escalating supply disruptions across Red Sea shipping lanes and the Strait of Hormuz.
East-West Pipeline Closure Threatens Global Supply
Saudi Arabia’s vital East-West pipeline was shut down following drone strikes over the weekend, according to state authorities cited by Reuters and regional reporting. The critical energy infrastructure allows Riyadh to bypass the Strait of Hormuz for oil exports.
Traders in the Kingdom warned that export reserves would be depleted within days if the pipeline remains closed, according to local reporting from September 14, 2026. ING commodities strategists noted that while the route is crucial, the exact extent of physical damage and the timeline for repairs remain unclear. With the pipeline offline, the Red Sea port of Yanbu holds only enough stock to cover five to seven days of exports, based on data from three sector sources familiar with Saudi shipping operations. State media broadcast footage of structural damage to residences and a mosque in Jazan province following the strikes.
Regional Maritime Chokepoints Under Pressure
Control over crucial maritime transit routes tightened further as Houthi forces captured Perim Island in the Bab al-Mandab strait, a corridor handling roughly 4% to 5% of global oil supplies.
In the Strait of Hormuz, maritime security risks escalated sharply. The UK Maritime Trade Operations (UKMTO) reported that a vessel in the strait was struck by a projectile, igniting a fire and forcing the crew to evacuate. Meanwhile, Iranian state media confirmed that one person died and four crew members sustained injuries after a commercial vessel was hit off the coast of Iran.
Diplomatic Talks Delayed Amid Stalemates
Plans to ease maritime transit bottlenecks hit a roadblock as regional diplomatic efforts stalled. Omani Foreign Minister Sayyid Badr Albusaidi announced the postponement of scheduled talks between Iran and Gulf Arab states regarding the management of the Strait of Hormuz.
Iranian Foreign Minister Abbas Araqchi stated in an interview with Al-Arabi Al-Jadeed that Tehran would not reopen the strategic waterway until the United States met Iranian demands. This diplomatic freeze follows a broader six-month conflict involving the United States and Israel, with no formal peace negotiations advancing since a provisional agreement collapsed in June.
Did you know? The East-West pipeline spans across Saudi Arabia to connect Persian Gulf oil fields directly with Red Sea export terminals, bypassing traditional maritime bottlenecks like the Strait of Hormuz.
Frequently Asked Questions
Why did oil prices spike recently?
How much of the global oil supply is threatened by the pipeline closure?
Market analysts and regional authorities estimate that disruptions to the East-West pipeline threaten up to 4% of global oil supplies.
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What is the status of diplomatic talks over the Strait of Hormuz?
Omani-mediated talks between Iran and Gulf states were postponed, and Iranian officials stated the strait will remain closed until U.S. demands are met.
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