Saudi Arabia Seeks to Increase Crude Oil Exports Through Strait of Hormuz After Pipeline Shutdown

[Financial News] Saudi Arabia is pursuing measures to increase crude oil shipments through the Strait of Hormuz following the shutdown of a major pipeline.
According to sources on June 14 (local time), Saudi Arabia took this step after the East–West Crude Oil Pipeline, a key route for supplying crude oil to global markets, was attacked and operations were suspended amid the fallout from its war with Iran.
Saudi Arabia had already increased the volume of crude oil transported through the Strait of Hormuz during the first 10 days of September compared with August. A source familiar with the matter said Saudi Arabia was focusing on expanding those shipments further.
Saudi Arabia had previously used the East–West Crude Oil Pipeline to send crude oil to the Red Sea coast, bypassing the Strait of Hormuz, a conflict zone. However, the pipeline shutdown is expected to make Saudi Arabia even more dependent on the Strait of Hormuz.
As security concerns intensified in areas bordering Yemen following a series of attacks by Iran-aligned Houthi rebels, Saudi Arabia lifted risk alerts issued for four southern cities on June 14.
Saudi Arabia’s civil defense authorities issued alerts for Najran, Khamis Mushait, Jazan and Abha, then declared the areas safe. They later reissued alerts for Khamis Mushait and Abha but lifted them again shortly afterward.
The attacks drew strong condemnation and expressions of solidarity from Arab and regional governments, as well as organizations in the Gulf region and the Islamic world. In particular, the Gulf Cooperation Council (GCC), the Muslim World League (MWL) and the Organisation of Islamic Cooperation (OIC) expressed support for Saudi Arabia and condemned attacks on Saudi territory and critical infrastructure.
Newsweek reported that warnings had been issued that crude oil exports through the route could be completely halted within a week if operations at Saudi Arabia’s major pipelines, disrupted by drone attacks, were not resumed.
Energy industry sources said a full recovery could take up to six weeks, threatening approximately 4% of global crude oil supplies.
The Saudi government had earlier announced the sudden suspension of operations on the East–West Crude Oil Pipeline as a precautionary measure following drone attacks originating from Iraq. The attacks are believed to have been carried out by an armed group in Iraq backed by Iran. Saudi authorities have not disclosed the exact extent of the damage or how long operations are expected to remain suspended.
Energy market experts are warning that the situation could have repercussions across the global economy.

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