Saudi Arabia’s Alternative Oil Route
Saudi Arabia is the largest oil producer in the Middle East. Before the Iran war, Saudi Arabia produced 7 million barrels of oil per day that was transported through the Strait of Hormuz. The Strait of Hormuz is a key waterway that connects the Persian Gulf to the Gulf of Oman. This route is important in the oil world as around 25 percent of the world’s oil is transported through the Strait most significantly reaching Asian markets.
Saudi Arabia has been shipping oil along an alternative route to the Strait of Hormuz since the beginning of hostilities involving the U.S., Israel, and Iran that started in February 2026. In March 2026, Iran closed and controlled the Strait of Hormuz which was Saudi Arabia’s main route for transporting oil.
Saudi Arabia has since turned to their East-West pipeline from Abqaiq in the east to the Red Sea oil terminal in Yanbu in the west. This pipeline is Saudi Arabia’s key to oil exportation. From Yanbu, oil tankers can sail south through the Bab al-Mandab Strait toward Asia or north through Egypt’s Suez Canal toward Europe. This route is key to avoiding the routes controlled by Iran on the Strait of Hormuz.
Source: AlJazeera
Attacks On Saudi Arabian Oil Pipelines
On September 10 and 11, drones launched from Iraq struck the East-West Pipeline. Saudi officials blamed Iran-backed militias located in Iraq, and the Iraqi government strongly condemned the strikes, denouncing its territory being used as a “launchpad for attacks against any nation.” Saudi Arabia shut the pipeline as a precaution, stopping about 4 percent of the world’s oil from reaching global markets and increasing gas prices as a result.
About a week later on September 19, additional drone strikes targeted the Saudi Arabian capital Riyadh and other Saudi energy sites. The Houthis, an armed political and religious group from northern Yemen, claimed responsibility for this round of attacks. The Houthis are backed by Iran. Before the September 19 strikes were launched, Houthi militants had also gained control of the strategic islands of Greater and Lesser Hanish which increased their control of Red Sea shipping routes.
Saudi Arabia has a history of conflict with the Houthis. A Saudi-led coalition of nations entered Yemen in 2015 at the request of former Yemeni President Abdrabbuh Mansur Hadi to stop the Houthis from taking over the country, which Saudi leaders feared would put Yemen under Iran’s influence. The war that followed created one of the world’s worst humanitarian crises. The Houthis and Saudi Arabia reached an informal ceasefire in 2022, but it has since unraveled amid the wider war between the U.S., Israel and Iran.
On September 10, Saudi Crown Prince Mohammed bin Salman asked President Trump to launch U.S. strikes against the Houthis. Trump declined but offered intelligence support. He later considered strikes but decided to hold off. As of September 27, no U.S. strikes on the Houthis had been reported.
Saudi Arabia restarted the East-West Pipeline at a reduced rate on September 22 after weeks of repair, but a full return to normal flow could take several more weeks. The nation continues to face regional oil shipping issues as the U.S.-Israeli and Iran war continues.
Effects on the Oil Market
The pipeline shutdown in early September pushed oil prices up. On September 16, Brent crude, a global benchmark for oil prices, closed at about $106 per barrel, but prices eased slightly after Saudi Arabia restarted the pipeline. By September 28, the pipeline was carrying at least 3.5 million barrels a day, about half its full capacity. On September 29, Brent traded near $100, still almost 50 percent higher than a year earlier.
Risks to the oil supply remain. In July, Goldman Sachs estimated that oil could top $120 per barrel if shipping through the Strait of Hormuz remained disrupted.
Americans are already paying more at the pump. On September 24, the national average price of gas reached $4.48 per gallon, the highest ever recorded by the American Automobile Association for that time of year. As the conflict continues to disrupt the shipping routes of major oil exporters like Saudi Arabia, the cost of gas will likely continue to rise.