Saudi Arabia’s oil exports face a major disruption after a drone attack forced the shutdown of its key east-west pipeline, threatening to remove up to 4 percent of global oil supplies if the route is not restored within days, according to Saudi oil buyers and traders cited by Reuters.
The pipeline, known as the Petroline, carries crude from the Abqaiq oil field in Saudi Arabia’s Eastern Province to Yanbu on the Red Sea. Riyadh has not provided full details on the damage or how long the pipeline will remain offline.
Sources cited by Reuters gave differing estimates for repairs. One said the damage could take five to six weeks to repair, while another said the pipeline could be fixed sooner and might partially resume pumping while work continues.
The disruption comes as global energy markets are already under pressure from the Iran war and restrictions on shipping through the Strait of Hormuz. Oil prices rose sharply on Monday, with Brent crude climbing above $107 a barrel.
Brent crude for November delivery rose 2.8 percent to $107.54 a barrel, while US benchmark West Texas Intermediate for October gained 2.3 percent to $102.34. Both contracts extended gains from last week after moving back above $100.
The wider disruption to regional energy flows has been compounded by developments around the Bab el-Mandeb Strait, where Iran-backed Houthis have taken control of territory overlooking the key Red Sea maritime route.
Oman postpones Gulf-Iran meeting on Hormuz
A meeting in Oman between Gulf countries and Iran that had been scheduled for Monday has been postponed, Omani Foreign Minister Badr Albusaidi said on X.
The meeting was intended to discuss possible agreements concerning the Strait of Hormuz, a critical route for global energy shipments.
The postponement comes as shipping through the strait remains sharply reduced. Preliminary ship-tracking data showed commodity vessel transits fell to single digits per day over the weekend, below a 10-day average of 14.
Four vessels exited the Gulf through the strait over the weekend, while 10 entered it, according to the data. The figures exclude vessels that may have crossed with their Automatic Identification System transponders switched off.
The United States has also redirected 101 commercial vessels in the Strait of Hormuz as part of its naval blockade of Iran, US Central Command said. The blockade of Iranian ports was reinstated in July after talks between Washington and Tehran broke down.
Houthi gains deepen pressure on Red Sea routes
The energy disruption extends beyond the Gulf. Yemen’s Houthis have consolidated their hold over areas along the Red Sea coast, including territory overlooking the Bab el-Mandeb Strait.
The group has said Saudi Arabia carried out more than 50 strikes against its positions in a 24-hour period, following a claimed drone and missile attack on a military base in the kingdom.
The renewed fighting follows a Houthi offensive that culminated in the group capturing Yemen’s Red Sea coast. The waterway is particularly significant for Saudi oil exports while the Strait of Hormuz remains closed amid the Iran war.
Yemen’s armed forces, meanwhile, said they had recaptured positions in Taiz province from the Houthis and advanced towards the Ghail Bani Umar area. Yemen’s Air Force also targeted Houthi vehicles in the Dhu Bab and Mocha areas, according to Al Jazeera.
The renewed fighting has displaced nearly 86,000 people, according to the International Organization for Migration. The agency said the number of displaced people had risen by about 10,000 in a single day, with many people forced to flee more than once.
