Saudi Arabia Restarts East-West Pipeline as Houthis Threaten Bab el-Mandeb

Saudi Arabia Restarts East-West Pipeline as Houthis Threaten Bab el-Mandeb

Saudi Arabia is racing to restore its East-West oil pipeline after attacks forced a shutdown, while a $24.3 billion US fighter jet deal moves forward amid escalating Houthi threats near a key shipping lane.

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Saudi Arabia is working to restart its East-West pipeline after attacks forced a shutdown of the key oil export route, even as Houthi forces escalate threats in the region.

The East-West pipeline allows Saudi crude to reach the sea without passing through the Strait of Hormuz, a narrow waterway between Iran and Oman that handles about one-fifth of the world's oil. The shutdown followed multiple attacks, and analysts warned that oil prices could rally sharply if the pipeline stays offline longer than a five-to-seven-day inventory cushion [238854][241712].

The disruption added new supply risks to a market already under pressure from the US-Iran conflict and the Russia-Ukraine war, where Ukrainian strikes on Russian refineries have cut Moscow's fuel output [243098][241889]. Iraq's government worked urgently to limit damage after Iran-backed militias in the country were accused of attacking the pipeline, adding pressure on Baghdad to stay out of the wider regional conflict [239991].

The conflict was triggered by the US-Israeli offensive against Iran that began at the end of February. The Houthis, an Iran-backed group in Yemen, have stepped up recruiting, and Yemen fell back into war in July after years of calm [239991].

The Houthis are also seeking control of the Bab el-Mandeb Strait, a narrow waterway between Yemen and East Africa through which roughly one-tenth of global trade passes [244253][243367]. Government forces in southwestern Yemen reported downing an explosive-laden drone in Al-Dhalea province and striking Houthi positions in Taiz province, both near the strait. The Houthis have not commented, and neither side's account could be independently verified [243367].

Saudi Arabia and the Houthis have exchanged attacks as fighting escalates, with five people reportedly killed. The Houthis denied attacking Mecca, while Saudi Arabia said one person was killed by drone shrapnel [244023].

Meanwhile, the Trump administration is moving forward with a $24.3 billion fighter jet deal for Saudi Arabia as the Houthi attacks escalate [244253].

Oil prices initially rose after the pipeline shutdown but later fell in early Asian trading on Monday, reflecting optimism that the disruption to Middle East crude exports can be contained [240712][243022].

Sources

Saudi Arabia Halts Key Oil Pipeline After Attacks #238854Saudi pipeline shutdown threatens oil markets #241712Oil prices steady as Saudi Arabia races to fix pipeline #243098Oil spikes as Saudi pipeline and Libyan fields halt supply #241889Saudi Oil Pipeline Shut Down: Iraq Accused of Militia Attack #239991Saudi Arabia to buy US fighter jets as Houthis escalate attacks #244253Yemen: Drone Downed as Fighting Escalates Near Key Shipping Lane #243367Saudi Arabia and Houthis trade attacks as conflict worsens #244023Saudi pipeline attack sends oil prices higher #240712Oil Prices Drop as Middle East Supply Fears Ease #243022

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