Archive · 17 Sep 2026
Saudi Arabia Seeks Oil Export Alternatives After Pipeline Attack
A drone attack damaged an important Saudi oil pipeline.
This pipeline normally helps move oil away from the Strait of Hormuz.
Saudi Arabia had already been sending less oil through it because of attacks on ships in the Red Sea.
One possible backup is to move oil through the Strait using ships.
The ships may travel in groups with U.S. military protection.
Then the oil can be transferred to another ship outside the strait.
This method is expensive and difficult to track.
Saudi Aramco may be able to repair the pipeline quickly because it has many local supplies.
The attacks could keep oil prices high while Saudi Arabia works to restore its exports.
A drone attack launched from Iraq forced Saudi Arabia to shut its East-West oil pipeline.
The pipeline had helped offset nearly one-fifth of oil supplies lost during the Strait of Hormuz closure.
Saudi Arabia exported 2.9 million barrels of oil and refined products daily from Yanbu in August, down from 5 million previously.
A costly ship shuttle through the Strait of Hormuz may provide an alternative, with tankers traveling under U.S. protection.
Saudi Aramco’s local supply chain and repair capacity could help restore damaged infrastructure quickly, but attacks expose Saudi energy vulnerabilities.
- Who
- Saudi Arabia and Saudi Aramco were affected; militants launched the reported drone attack from Iraq, according to the article.
- What
- A drone attack forced the shutdown of Saudi Arabia’s East-West oil pipeline, disrupting a major route for exporting crude and refined products.
- When
- The attack and pipeline shutdown occurred in recent days; August export figures cited in the article show the latest comparison.
- Where
- The pipeline connects Saudi oil production to Yanbu on the Red Sea coast; the reported attack was launched from Iraq, and a possible alternative route uses the Strait of Hormuz.
- Why
- The attack disrupted a key route that had helped compensate for oil supplies lost during the Strait of Hormuz closure and increased concerns about global oil prices.
- Pipeline affected
- Saudi Arabia’s East-West pipeline
- August Yanbu exports
- 2.9 million barrels of oil and refined products per day
- Earlier Yanbu average
- 5 million barrels per day from March through July
- Estimated shuttle exports
- About 9 million barrels of oil and refined products per day, according to commodities traders
- Shuttle cost
- Producers pay an estimated $16 to $20 per barrel for the risky Strait of Hormuz route
- Insurance cost
- Insurance can reach 10% of the vessel and cargo value
- Saudi oil revenue dependence
- Oil accounts for 55% of Saudi government revenues