Saudi oil pipeline hit after Iran attack, flows at risk

Saudi Arabia’s East-West oil pipeline was damaged on Wednesday after an Iranian attack, an industry source said, raising the risk of disruptions to a key crude export route. The incident came after Iran effectively closed the Strait of Hormuz, a development that has affected global energy markets.

The East-West pipeline is described as a critical link that moves crude from Saudi Arabia’s eastern oil heartland to the Red Sea port of Yanbu. The line diverts about 7 million barrels per day (bpd) to Yanbu and is currently the kingdom’s only outlet for crude exports, according to the information provided.

Officials and industry participants were still assessing the extent of the damage, and the evaluation was ongoing. The industry source said flows through the pipeline were expected to be affected, though the scale and duration of any impact were not specified.

Export activity at Yanbu had been running at high levels before Wednesday’s damage was reported. Loadings from Yanbu averaged nearly 4.6 million bpd in the week starting March 23, even after earlier attacks on the hub on March 19, according to the figures cited in the source material.

Saudi Aramco uses about 2 million bpd domestically, leaving roughly 5 million bpd available for export, based on the same account. With the Strait of Hormuz effectively closed and the East-West pipeline described as the sole crude export outlet, the condition of the pipeline and the operational status of Yanbu are central to near-term export capacity.

Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for missile and drone strikes across the region on Wednesday. The IRGC said it targeted several facilities, including what it described as oil facilities belonging to American companies in Yanbu.

What remains unclear is the precise location and severity of the pipeline damage, how quickly repairs could be completed, and how much throughput may be reduced while assessments continue. The industry source indicated flows were expected to be affected, but no updated loading schedule or revised export guidance was provided in the source material.