Saudi Arabia’s East-West crude oil pipeline is set to resume operations soon, following a temporary closure due to drone attacks attributed to Iran-backed groups. U.S. Energy Secretary Chris Wright confirmed this in a recent CNBC interview, indicating that the shutdown will last only a few days.
The pipeline, essential for redirecting oil exports away from the Strait of Hormuz, was halted following damage from the attacks. During this downtime, Saudi Arabia has reverted to utilizing the Strait with U.S. military assistance. U.S. crude oil prices have surged over 5% in response to concerns over potential supply disruptions, trading above $105 per barrel.
While satellite imagery has suggested significant damage to infrastructure, the exact timeline for repairs remains unclear. Analysts project that a prolonged closure could lead to a loss of up to 120 million barrels of oil if the pipeline remains inactive for a month.
