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Jeddah, September 13, 2026 – Saudi Arabia has closed its East West oil pipeline following a series of drone strikes, a move that underscores the fragility of global energy flows as regional tensions escalate.
The shutdown, announced by the Energy Ministry, halts a conduit capable of transporting up to five million barrels of crude per day from the Kingdom’s eastern oilfields to the Red Sea port of Yanbu.
Officials said the closure was a precautionary measure after attacks in the Riyadh and Medina regions left several people injured.
Saudi authorities blamed militias operating from Iraq, while Baghdad confirmed the drones originated from its territory.
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Iraq’s prime minister ordered an investigation and dismissed a senior military commander, highlighting the difficulty of controlling Iranian backed groups within its borders.
The East West pipeline, stretching 1,200 kilometers across the Kingdom, is strategically vital.
It allows Saudi Arabia to bypass the Strait of Hormuz, a chokepoint long vulnerable to Iranian interference.
With the pipeline offline, Riyadh faces heightened exposure to disruptions in both Hormuz and the Bab el Mandeb strait, where Houthi rebels recently seized Perim Island, tightening their grip on Red Sea shipping lanes.
Oil markets reacted swiftly. Brent crude surged above $104 per barrel, ending the week more than eight percent higher.
Traders fear prolonged instability could choke Saudi exports, removing a significant share of global supply and complicating inflation control in energy importing economies.
Analysts warn that if both Hormuz and Bab el Mandeb remain compromised, the world’s largest oil exporter could struggle to maintain steady shipments.
Diplomatically, Riyadh has refrained from immediate retaliation, citing Iraq’s request for time to prevent further attacks.
Yet Saudi officials stressed they reserve the right to act if threats persist.
Reports also suggest the Kingdom has sought U.S. military support to counter Houthi advances, placing Washington in a delicate position as rising fuel costs ripple through global markets.
The closure highlights the vulnerability of Saudi Arabia’s energy infrastructure at a moment of intensifying geopolitical risk.
With Iran aligned Houthis advancing in Yemen and militias striking from Iraq, Riyadh faces a two front challenge that threatens both its economic stability and its role as a reliable supplier to world markets.
For investors, the episode is a stark reminder of the volatility embedded in oil futures.
Beyond crude prices, the ripple effects could extend to currencies and equities tied to energy, reinforcing the global economy’s sensitivity to Middle Eastern flashpoints.
