Saudi Arabia Races to Restore Red Sea Oil Exports After Pipeline Attack

Saudi Arabia is working urgently to restore oil loadings at its strategic Red Sea port of Yanbu after drone attacks severely damaged the kingdom’s 750-mile East-West pipeline, forcing a temporary rerouting of crude shipments through the Strait of Hormuz. Saudi Aramco officials have informally told at least three Asian refiners that they would soon be able to pick up crude oil cargoes at the Yanbu port on the Red Sea, according to anonymous traders with knowledge of the matter who spoke with Bloomberg on Tuesday.

The kingdom has halted loadings at the Yanbu port, its key export terminal that bypasses the Strait of Hormuz, since the September 10 drone attacks on the East-West onshore oil pipeline that fed crude from the Saudi oilfields to the Yanbu port. Saudi Arabia shut down its East-West oil pipeline following the drone attacks launched from the territory of Iraq close to the Iranian border, marking a significant escalation in regional tensions.

The 750-mile-long East-West pipeline has enabled the kingdom to re-route most of its crude loadings from its eastern ports in the Persian Gulf to the Red Sea port of Yanbu. The vital infrastructure is capable of carrying up to 7 million barrels per day, equivalent to roughly 4% of global supply.

Shuttle Shipping Through Hormuz Intensifies

With the East-West pipeline out of service, Saudi Arabia has hiked shuttle-shipping to the Strait of Hormuz. Saudi oil giant Aramco has offered buyers of the crude from the Ras Tanura port in the Persian Gulf to be loaded via ship-to-ship (STS) transfers at the port of Sohar in Oman just outside the Strait of Hormuz. The interruption has caused Very Large Crude Carrier spot rates to further spike, with maritime shuttling across the Strait of Hormuz appearing as a last resort, notwithstanding significant risks.

Satellite data showed that Saudi Arabia’s observed oil loadings from inside the Persian Gulf jumped over the weekend, with the highest number of ships seen at the nation’s main Persian Gulf port since June. The images indicate that the kingdom is successfully redirecting its exports back toward the Gulf following the shutdown of its vital East-West pipeline due to drone attacks.

Saudi Arabia has cut off Europe for October oil loadings from Yanbu, though Asian refiners could soon pick cargoes at the port. Executives at Aramco have given informal assurances to at least three refiners, although no timelines have been given about when loadings should be expected.

Pipeline Repairs Could Take Weeks

The repairs on the East-West pipeline could take three to five weeks, two regional officials briefed on the matter told The Associated Press last week. The Saudis are working to resume partial operations at half the capacity of the pipeline within days, a source with knowledge of the matter told Bloomberg last Wednesday. Aramco targets full capacity to return in about six weeks, according to the source.

Increased shipments through Hormuz and a recovery of the Yanbu loadings could ease market concerns about Saudi supply going to refiners, which look to maximize runs to seize astronomically high refining margins, especially in diesel. The resulting shutdown of the pipeline has pushed the price of Brent crude sharply higher, reflecting market anxiety over supply disruptions in the world’s most critical oil-producing region.

Escalating Regional Conflict Threatens Energy Infrastructure

Since the Iran war began in February 2026, the immense pressure put on the Gulf’s energy routes could find relief in few key alternatives on land, including the Saudi East-West pipeline and the UAE’s Habshan-Fujairah pipeline. However, the former has been caught in the crossfire of the Iran war once again. After a pumping station was attacked in April by Tehran, the September 10 drone strikes on the Saudi oil lifeline came from Iraqi soil, allegedly by Iran-backed militias.

On Wednesday this week, the Houthis also claimed to have struck Saudi Aramco’s oil facilities in Yanbu, the East-West pipeline export outlet on the Red Sea.

These events, which come in conjunction with escalating attacks between the Houthis and Riyadh, mark a significant escalation in the conflict. Energy infrastructure is increasingly caught in the crosshairs of the conflict, leaving investors worried it could take a long time for repairs and a full return to normal in both the Middle East and Europe.

Diplomatic Efforts Amid Market Volatility

Oil fell, settling near $100 a barrel, on signs Saudi Arabia is boosting exports via the key Strait of Hormuz and fresh hopes for diplomatic progress in the Iran war. Brent, the global benchmark, declined for a fourth session, settling 3.4% lower. The October West Texas Intermediate contract, which expires on Tuesday, fell about 4.5%.

The Trump administration has proposed investing $5 billion in a new fund to help Middle East countries rebuild energy infrastructure battered in the Iran war, the Wall Street Journal reported. Meanwhile, the US president told Fox News he would “probably” be open to meeting his Iranian counterpart, Masoud Pezeshkian, on the sidelines of the UN General Assembly in New York this week.

Trump will also hold a summit with Chinese President Xi Jinping. China is the world’s top importer of oil, and provides Tehran with an economic lifeline as its biggest buyer. The US is seeking to step up pressure on Tehran’s trading partners, signaling a multifaceted approach to addressing the regional crisis that continues to threaten global energy markets.