Oil prices rise after Saudi Arabia shut down critical pipeline that bypasses Strait of Hormuz
Global oil prices approached 110 dollars per barrel on Friday, the highest level since May. The surge follows Houthi drone strikes that shut down Saudi Arabia's East-West Pipeline, prompting the kingdom to halt oil shipments to Europe. This disruption threatens 4 percent of the global oil supply and has already pushed crude prices above 100 dollars per barrel. The U.S. Energy Information Administration has responded by increasing its fourth-quarter Brent crude forecast to 105 dollars per barrel amid a broader global fuel price crunch.
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- ✓ Houthi drone strikes shut down the East-West Pipeline.
- ✓ Saudi Arabia halted oil shipments to Europe.
- ✓ Oil prices rose above 100 dollars per barrel.
What changed
Oil prices rose to nearly 110 dollars per barrel, and Houthi drone strikes were identified as the cause of the pipeline shutdown.
Live updates
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Oil prices near 110 dollars as Houthi strikes disable Saudi pipeline
Global oil prices approached 110 dollars per barrel on Friday, the highest level since May. The surge follows Houthi drone strikes that shut down Saudi Arabia's East-West Pipeline, prompting the kingdom to halt oil shipments to Europe. This disruption threatens 4 percent of the global oil supply and has already pushed crude prices above 100 dollars per barrel. The U.S. Energy Information Administration has responded by increasing its fourth-quarter Brent crude forecast to 105 dollars per barrel amid a broader global fuel price crunch.
Why it matters
The East-West Pipeline is a critical asset that allows Saudi Arabia to move oil to the Red Sea, bypassing the Strait of Hormuz. Its closure increases reliance on a single maritime chokepoint during a period of escalating tension between Saudi Arabia and Iran-backed Houthi forces.
What is confirmed
- Houthi drone strikes shut down the East-West Pipeline.
- Saudi Arabia halted oil shipments to Europe.
- Oil prices rose above 100 dollars per barrel.
Still unconfirmed
- Global oil prices came within a whisker of 110 dollars per barrel on Friday.
- Escalating tensions between Saudis and Iran-backed Houthis contributed to higher oil prices.
What to watch next
- Updates on the repair timeline for the East-West Pipeline
- Official statements from Iran regarding the Houthi drone strikes
- Changes to the U.S. Energy Information Administration Brent crude forecast
confidence 90%Sources used for this update (3)
- en.parapolitika.gr — Saudi Arabia cancels oil shipments to Europe after Houthi ...
- www.cnbc.com — Oil rises amid growing tensions between Saudis and Iran ...
- www.commbank.com.au — Oil prices hit highest level since May after Middle East and ...
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Oil Prices Rise as Saudi Arabia Shuts Down Pipeline
Crude oil prices have rallied above 100 dollars per barrel following the shutdown of Saudi Arabia's East-West pipeline after multiple attacks, renewing global supply risks. Saudi Arabia suspended crude loadings at Yanbu and canceled some European cargoes due to pipeline damage. The outage threatens a loss of 4 percent of global oil supply, worsening a global supply crunch that has pushed global fuel prices to record highs. In response to the disruption, the U.S. Energy Information Administration raised its Brent crude oil forecast for the fourth quarter to 105 dollars per barrel.
Why it matters
The pipeline shutdown affects a critical export route that bypasses the Strait of Hormuz, intensifying vulnerability in global energy transit. Geopolitical tensions in the region have escalated alongside military actions in Yemen, directly impacting maritime and pipeline infrastructure. Energy markets remain sensitive to Middle Eastern supply stability, translating regional infrastructure losses into immediate price surges.
What is confirmed
- Saudi Arabia suspended crude loadings at Yanbu and canceled some European cargoes after damage to its East-West pipeline.
- The U.S. Energy Information Administration raised its Brent crude oil forecast for the fourth quarter to 105 dollars per barrel in its October Short-Term Energy outlook.
- Crude Oil rose to 95.16 USD/Bbl on September 28, 2026, up 2.97 percent from the previous day.
Still unconfirmed
- Iran-backed Houthi rebels captured the strategic islands of Greater and Lesser Hanish.
What to watch next
- Timeline for repairs and the resumption of full capacity on the East-West pipeline
- Official updates on European cargo cancellations and redirection of Saudi crude shipments
confidence 90%Sources used for this update (15)
- www.cnbc.com — Crude Oil Prices Today and Oil Market News - CNBC
- www.presstv.co.uk — Saudi Red Sea oil shipments halted amid pipeline damage, war on Yemen
- spectrumlocalnews.com — Saudi oil pipeline hit in strikes will be mostly out of service for several weeks for repair
- oilprice.com — Crude Oil Prices Today | OilPrice.com
- en.wikipedia.org — Oil - Wikipedia
- oilprice.com — Oil News Today | OilPrice.com
- en.wikipedia.org — Petroleum - Wikipedia
- tradingeconomics.com — Crude Oil - Price - Chart - Historical Data - News
- www.liveoilprices.com — Live Oil Prices — Real-Time Crude Oil & Energy Market Data
- markets.businessinsider.com — Crude Oil Price Today | WTI OIL PRICE CHART | OIL PRICE PER...
- www.thedailystar.net — Saudi pipeline outage threatens loss of 4% of global oil ...
- www.thedailystar.net — Saudis shut down oil pipeline as Houthis tighten grip on Red ...
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Saudi Arabia restores East-West pipeline to stabilize oil exports
Saudi Arabia has resumed oil loading at the Red Sea port of Yanbu after repairing its East-West pipeline following a drone attack. The pipeline currently moves approximately 3.5 million barrels per day, which is half of its total capacity. This restart allows Riyadh to bypass the Strait of Hormuz and stabilize global energy flows during a period of significant disruption in the Persian Gulf. Brent crude prices have fluctuated recently, steadying near 105 dollars a barrel as supply pressures ease.
Why it matters
The East-West pipeline is a strategic route that avoids the Strait of Hormuz, a critical chokepoint for Gulf oil transport. By rerouting crude to Red Sea ports, Saudi Aramco can maintain exports even when shipping lanes in the Persian Gulf are threatened. This infrastructure is essential for mitigating the impact of regional conflict on global energy markets.
What is confirmed
- Saudi Arabia resumed oil loading at the Red Sea port of Yanbu after restarting the East-West pipeline.
- The East-West pipeline was shut down due to a drone attack.
- Brent crude prices have traded near 105 dollars a barrel following the pipeline restart.
Still unconfirmed
- Current pipeline flow is approximately 3.5 million barrels per day.
- Crude loadings at Yanbu have been around 2 million barrels per day since last week.
What to watch next
- Whether the East-West pipeline returns to full-capacity operation
- Saudi Arabia's subsequent export allocations
- Further disruptions to shipping lanes in the Strait of Hormuz
confidence 90%Sources used for this update (10)
- saudipress.com — Saudi Arabia Pushes East-West Oil Pipeline Toward Full Capacity as ...
- saudipress.com — Saudi Aramco Reroutes Oil to Red Sea as Strait of Hormuz ...
- www.straitstimes.com — Saudi resumes Yanbu oil loading after pipeline restart
- thearabianpost.com — Oil steadies as Saudi pipeline restores export route | Arabian Post
- longbridge.com — Saudi Arabia Resumes Exports After Repairing Key Oil Pipeline ...
- economictimes.indiatimes.com — From Hormuz to Saudi to US sanctions, world feels the oil ...
- www.marineinsight.com — Saudi Arabia Resumes Crude Oil Loadings At Red Sea Port Of ...
- finance.biggo.com — Saudi Arabia's Strategic East-West Pipeline Reportedly Hit ...
- discoveryalert.com — Strait of Hormuz Oil Impact: Bypass Pipelines Cap Brent
- blockonomi.com — Crude Markets Regain Ground Despite Lingering Middle East ...
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Oil prices rise after Saudi Arabia shut down critical pipeline
Oil prices increased as Saudi Arabia's East-West pipeline, which bypasses the Strait of Hormuz, was shut down due to drone attacks. Despite this, Saudi crude oil exports have reached their highest level since the Iran war began. The pipeline has since restarted, easing oil prices. Brent crude previously dropped to $99.82 a barrel and later rose to $105.28 after the pipeline's restart.
Why it matters
The shutdown and restart of the pipeline impact global oil prices and supplies. The Strait of Hormuz is a critical waterway for oil transportation, and tensions in the region, including the Iran war and attacks by Iran-backed militants, have raised concerns about supply disruptions. Saudi Arabia's oil production had fallen to 8 million barrels per day after a 20% cut amid the Iran war.
What is confirmed
- Saudi Arabia shut down a major oil pipeline due to attacks amid fighting in Yemen.
- The pipeline shutdown drove up world oil and gas prices as part of Iran's strategy to pressure the United States.
- Saudi crude oil exports hit their highest level since the Iran war began despite the pipeline outage.
- The pipeline was restarted after sustaining damage in a drone strike, easing oil prices.
Still unconfirmed
- Houthis' territorial gains could boost Iran's strategy of driving up world oil and gas prices.
What to watch next
- Saudi Arabia's oil production levels
- Further developments in the Iran war
- Impact of pipeline restart on global oil prices
confidence 80%Sources used for this update (6)
- spectrumlocalnews.com — Saudi Arabia shuts down major oil pipeline, citing attacks amid fighting in Yemen
- www.cnbc.com — Saudi Arabia crude oil exports hit highest level since Iran war began despite pipeline outage
- thearabianpost.com — Saudi pipeline outage lifts oil prices further — Arabian Post
- www.cnbc.com — Oil price today: WTI, Brent, Trump, Iran - CNBC
- en.sedaily.com — Saudi Pipeline Bypassing Hormuz Restarts, Easing Oil Prices
- news.sbs.co.kr — Saudi Arabia Resumes Red Sea Crude Oil Exports Following ...
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Oil Prices Slip Below $100 as Markets Weigh Saudi Cuts and Iran War
Brent crude oil dropped 0.8% to $99.82 a barrel following earlier fluctuations driven by a critical Saudi pipeline shutdown. The decline coincides with Saudi oil production falling to 8 million barrels per day after a 20% cut amid the Iran war. Meanwhile, European benchmark gas fell 1.7% to 71.96 euros a megawatt-hour, and copper futures rose 0.7% to $14,762 a metric. Markets previously reacted to an unexpected increase in U.S. crude inventories and suspended oil loadings at Yanbu, leaving investors to weigh tightening global buffers against short-term price corrections.
Why it matters
Saudi Arabia previously spent months trying to bypass the Strait of Hormuz using the Petroline pipeline to Yanbu. The pipeline shutdown and subsequent production cuts remove critical export workarounds during the ongoing conflict with Iran. Global commodity markets face heightened volatility as dwindling buffers leave few mechanisms outside of demand destruction to balance supply.
What is confirmed
- Brent crude oil is down 0.8% at $99.82 a barrel.
- European benchmark gas is down 1.7% at 71.96 euros a megawatt-hour.
- Copper futures are up 0.7% at $14,762 a metric.
Still unconfirmed
- Saudi oil production falls to 8 million bpd after a 20% cut amid the Iran war.
What to watch next
- Duration of the Saudi pipeline shutdown and production cuts
- Developments in the Iran war impacting regional energy infrastructure
- Future U.S. crude inventory reports and global demand indicators
confidence 80%Sources used for this update (2)
- www.wionews.com — Saudi oil production falls to 8 million bpd after 20% cut amid Iran war: Report
- www.marketscreener.com — Saudi Arabia Spent Months Trying to Bypass Hormuz. For Now, There's No Way Around It. -- Commodities Roundup
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Brent crude slides toward $107 as U.S. inventories rise
Oil prices fell Wednesday following an unexpected increase in U.S. crude inventories, countering gains from the Petroline pipeline shutdown. Brent crude reached as high as US$121.25 before retreating toward $107. While U.S. stockpiles provided a short-term price correction, the market remains volatile. Investors are weighing the impact of suspended oil loadings at Yanbu against falling global inventories. Market analysts suggest that demand destruction may be the only remaining mechanism to balance the market as buffers disappear.
Why it matters
Saudi Arabia closed the East-West pipeline after drone strikes, forcing oil to move through the Strait of Hormuz. This disruption coincides with supply halts in Libya and reports of Iranian attacks on Gulf shipping. High energy costs are currently pressuring Indian stock markets and raising global inflation fears.
What is confirmed
- Brent crude hit US$121.25 after the Petroline pipeline shut down.
- Oil prices fell on Wednesday due to an unexpected build in U.S. crude inventories.
- Oil loadings were suspended at Yanbu.
- Brent crude topped $108.
Still unconfirmed
- U.S. 10-year yields have crossed 5%.
What to watch next
- Updates on the resumption of oil loadings at Yanbu
- New U.S. crude inventory reports
- Diplomatic developments regarding a regional ceasefire
confidence 90%Sources used for this update (6)
- discoveryalert.com — Oil ETFs Surge as Drone Strikes Force Petroline Offline
- finance.yahoo.com — Saudi Pipeline Outage Hits an Oil Market Running Out of Buffers
- www.cnbc.com — Oil falls as U.S. crude inventories rise despite Saudi supply concerns
- www.fortuneindia.com — Market recovery at risk: Will bond yield spike, interest rate fear deepen Sensex, Nifty losses after two years of negative returns?
- www.tekedia.com — Cramer Says Wall Street Dodged Deeper Sell-Off as Oil, Bonds and AI Fears Ease
- en.protothema.gr — Oil: Brent edges lower toward $107 after increase in U.S. inventories
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Brent Crude Surges Past $108 Following Saudi Pipeline Shutdown
Oil prices continue to climb as Saudi Arabia keeps its East-West pipeline closed following Houthi strikes. Brent crude has risen around 20% this month, surpassing $108. Market volatility is intensifying due to a combination of the Saudi outage, a supply halt in Libya, and reports of Iranian attacks on ships in the Gulf. These disruptions coincide with Houthi territorial gains and a deadlock in regional diplomacy, fueling fears of prolonged supply instability across the Middle East.
Why it matters
The East-West pipeline allows Saudi Arabia to move crude to the Red Sea without passing through the Strait of Hormuz. A shutdown threatens 4% of the global oil supply. This outage occurs during a broader escalation involving U.S.-Iran conflict and Houthi rebel activity.
What is confirmed
- Brent crude prices have risen around 20% this month and surged past $108.
- Houthi rebels have conducted strikes on Saudi Arabia.
- Saudi Arabia has shut down its East-West pipeline.
Still unconfirmed
- Iran has conducted attacks on ships in the Gulf.
- Houthi rebels have made territorial gains.
- A supply halt in Libya is compounding the oil outage.
What to watch next
- Federal Reserve rate decision
- Evidence of pipeline repairs or restoration of flow
- Updates on U.S.-Iran military conflict
confidence 90%Sources used for this update (6)
- www.foxnews.com — US Air Force colonel shot down over Iran recounts 'modern-day miracle'
- www.cnbc.com — Oil extends gains following Houthi strikes on Saudi Arabia
- oilprice.com — Oil Prices Rise on Saudi Pipeline Outage and Rising Red Sea Risks
- finance.yahoo.com — Oil prices surge past $108 as Saudi pipeline shutdown continues
- www.yahoo.com — Oil and gas prices climb after Saudi Arabia closes key pipeline
- finance.yahoo.com — Stocks Fall Pre-Bell as Traders Await Fed Rate Decision Amid Rising Treasury Yields, Oil Prices
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Saudi Arabia shuts East-West pipeline after attacks, spiking oil prices
Global oil prices are rising after Saudi Arabia shut down its East-West pipeline following attacks. The pipeline is a critical artery that allows crude to reach the Red Sea, bypassing the Strait of Hormuz. This outage threatens a loss of 4% of the global oil supply and deepens an existing energy crisis. While Baghdad confirmed an attack originated from Iraq, other reports link the shutdown to strikes by Iran-backed Houthi rebels from Yemen. Satellite imagery has already confirmed the extent of the damage to the infrastructure.
Why it matters
The East-West pipeline reduces Saudi Arabia's reliance on the Strait of Hormuz, a primary maritime chokepoint. Disruption to this route forces more oil through the Strait, increasing vulnerability to regional conflict. Saudi Arabia currently faces mounting threats from Iran and its allies.
What is confirmed
- Saudi Arabia shut down its East-West oil pipeline.
- The pipeline allows crude to bypass the Strait of Hormuz by shipping it to the Red Sea.
- Oil prices have risen following the pipeline shutdown.
Still unconfirmed
- Saudi Arabia has few options as it faces mounting threats from Iran and its allies.
What to watch next
- Results of peace talks mentioned by CNBC
- Official Saudi government statement on the total volume of lost production
- Verification of whether multiple different groups coordinated the attacks
confidence 80%Sources used for this update (10)
- AP News — Saudi Arabia has few options as it faces mounting threats from Iran and its allies
- dw.com — Baghdad confirms attack on Saudi pipeline came from Iraq
- Reuters — Saudi pipeline outage threatens loss of 4% of global oil supply
- CNBC — Oil prices rise after Saudi Arabia shut down critical pipeline that bypasses Strait of Hormuz
- Bloomberg.com — Oil Jumps as Shutdown of Saudi Pipeline Deepens Energy Crisis
- CNBC — CNBC Daily Open: Peace talks amid pipeline shocks
- The Guardian — Satellite images show extent of damage to major Saudi pipeline, amid global oil supply fears
- san.com — Fighting between Houthis and Saudi Arabia drives oil prices soaring
- abcnews.com — What does the closure of Saudi-Arabia's East-West pipeline mean for gas prices?
- www.nydailynews.com — What the closure of Saudi Arabia’s East-West pipeline could mean for oil flows
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