Saudi oil pipeline to stay shut for weeks as Houthis seize Red Sea islands

Saudi Arabia's East-West Pipeline, damaged in drone strikes last week, is expected to remain largely out of service for three to five weeks, two regional officials briefed on the damage told the Associated Press on Monday. The shutdown removes the kingdom's primary workaround for exporting crude while the Strait of Hormuz remains disrupted by war with Iran, and comes as Houthi rebels seized more strategic islands near the Red Sea's other major chokepoint.english.mathrubhumi

A Pipeline Under Siege

The 1,200-kilometer pipeline was shut down on Sept. 11 after drone strikes that Saudi Arabia blamed on Iranian-backed militias operating in Iraq. The attacks, launched on Sept. 10–11 from Iraqi territory, hit pumping stations along the route, with satellite imagery showing heavy damage and fires. Iraq dismissed the military commander and police chief in Maysan province near the Iranian frontier in response.marinelink+2

The pipeline had been carrying roughly 4 to 5 million barrels per day to the Red Sea port of Yanbu, amounting to about 4–5% of global supply and serving as Saudi Arabia's main alternative to tanker routes through the Strait of Hormuz. One official said the pipeline could operate partially while repairs are carried out, but work at a major pumping facility is needed. Saudi Arabia reportedly has enough oil stored at Yanbu to sustain exports for five to seven days.time+3

Oil prices surged on Monday, with Brent crude futures climbing more than 4%. U.S. diesel prices surpassed $6 a gallon on Friday for the first time on record, while Brent had already risen more than 8% last week.barchart+1

Houthis Expand Along the Red Sea

Compounding the pipeline crisis, Yemen's Iran-backed Houthi rebels on Monday captured the Greater and Lesser Hanish islands, about 160 kilometers north of the Bab el-Mandeb Strait, after hundreds of government-allied forces withdrew. The seizure follows last week's capture of the port city of Mokha and the island of Mayun inside the strait itself, placing the Houthis within 32 kilometers of the U.S. military base in Djibouti.abcnews+1

The Houthis declared a blockade on Saudi vessels in July and have struck Saudi oil infrastructure and shipping for more than a month. Saudi Crown Prince Mohammed bin Salman called President Trump twice on Thursday asking for U.S. military strikes, but Trump declined, according to Reuters. Trump said Saturday that the Houthis had contacted his administration and preferred Washington stay out of the fight.time+1

Humanitarian and Diplomatic Fallout

The fighting has displaced more than 80,000 people in two weeks, the United Nations estimated, with more than 2,000 fleeing by boat to Djibouti. About 150 civilians have been killed since Sept. 3 and more than 200 wounded, according to Yemen's Human Rights Ministry.abcnews

An anticipated meeting between Gulf states and Iran to discuss the Strait of Hormuz, scheduled for Monday in Oman, was postponed, Omani Foreign Minister Badr Albusaidi announced Sunday. The International Energy Agency estimated that Gulf oil exports in August were nearly half their pre-war level, while global oil inventories have fallen by 507 million barrels since February.time

"As long as the American side does not accept all of Iran's conditions, dialogue and negotiation are of no use," wrote Ebrahim Azizi, head of Iran's parliamentary national security committee, in a post on X.marinelink