Saudi Arabia's East-West Pipeline was severely damaged last week in a strike, with experts saying repairs might take over a month. The assault could push oil prices higher amid ongoing regional tensions.
A pumping station on this vital pipeline, crucial for Saudi Arabia's crude exports, took the brunt of the damage. The Saudi government has accused Iranian-backed militias in Iraq of orchestrating the assault. This follows a pattern of missile and drone strikes by the Iran-backed Houthi group from Yemen on southwestern Saudi Arabia.
In response, Saudi Arabia has launched attacks on Houthi-controlled areas in western Yemen. On Tuesday, the Saudi government vowed to respond "firmly" to any further Houthi aggression. Meanwhile, the Houthis have escalated their offensive, seizing key territory along Yemen's southwestern coast, including strategic areas overlooking the Bab al-Mandab waterway. This position could allow them to threaten Saudi shipping routes.
The pipeline's shutdown has already impacted global oil markets. Brent crude prices hit $108 per barrel on Tuesday, down slightly from $109.80 on Monday. Closing the pipeline could reduce oil supplies by up to 3.6 million barrels per day, about 3.6% of global demand.
Homayoun Falakshahi, head of crude oil analysis at Kpler, mentioned that repairs might take four to six weeks due to spare-part shortages and disrupted supply chains. Anne-Sophie Corbeau from Columbia University's Center on Global Energy Policy highlighted that pipelines are vulnerable targets, and recent strikes show the limits of alternative routes like the Strait of Hormuz.
The Houthis have also targeted other Saudi oil infrastructure and military sites using drones and missiles, causing operational disruptions. Satellite images show damage to Saudi Arabia's King Khalid Air Base near Khamis Mushait, which the Houthis claim was hit with ballistic missiles and drones last week. Damage is visible on at least three aircraft hangars at the base, which houses US-made F-15 fighter jets.
The Saudi-led coalition reported on Tuesday that a Houthi missile and drone attack injured 13 people, targeting what it described as "civilian objects." In retaliation, Saudi Arabia carried out over 50 strikes in western Yemen within 24 hours.
The UN Refugee Agency notes that over 100,000 people have been internally displaced due to the renewed fighting.
