23 September 2026
Executive Summary
Saudi Arabia has restarted its strategically important East-West oil pipeline following the drone attacks that forced its closure earlier this month, restoring an important alternative export route around the Strait of Hormuz.
The pipeline had been shut following attacks on 11 September that damaged three pumping stations and halted crude loadings from the Red Sea port of Yanbu.
Operations have now restarted at a reduced rate.
Saudi Aramco is working towards restoring flows of approximately 4 million barrels per day, although industry and security sources indicate that returning the system to full operational capacity could take approximately six to eight weeks.
The pipeline itself has maximum capacity of approximately 7 million barrels per day.
At least one crude cargo was scheduled to load at Yanbu following the restart, bound for China.
The development helped push Brent crude lower as markets responded to the prospect of improving Saudi export capacity.
This is a material improvement in global energy resilience because Saudi Arabia is beginning to regain an export route that does not require passage through the Strait of Hormuz.
UK Impact
For UK businesses, the development is positive.
Greater Saudi export flexibility reduces some of the risk surrounding:
- Fuel availability.
- Oil prices.
- Diesel costs.
- Aviation fuel.
- Road transport.
- Industrial energy.
- Inflation.
It may also help restore Saudi crude flows towards European customers that were disrupted when Yanbu loadings stopped.
However, businesses should not assume the system has returned to normal.
The pipeline is operating below full capacity and damaged infrastructure is still being repaired.
Global Impact
Saudi Arabia has demonstrated several layers of contingency during the disruption.
It has:
- Increased Gulf exports.
- Used ship-to-ship transfers near Oman.
- Increased movements through Hormuz.
- Restarted the East-West pipeline.
- Prepared to restore Yanbu exports.
This materially improves the Kingdom’s ability to move oil.
But each method has different vulnerabilities.
The East-West pipeline reduces dependence upon Hormuz but transfers crude towards the Red Sea, where Bab el-Mandeb security remains uncertain.
Gulf exports avoid the damaged pipeline but increase dependence upon Hormuz.
Ship-to-ship transfers maintain flows but require additional vessels, insurance and handling.
Saudi Arabia therefore has multiple routes again — but none is currently without risk.
Our View
This is an important example of resilience actually working.
Businesses should nevertheless ask:
- At what rate is the pipeline currently operating?
- When will 4 million barrels per day be restored?
- When might full capacity return?
- Have Yanbu loadings actually resumed?
- Which customers are receiving the first cargoes?
- Are European cargoes being restored?
- How exposed is the pipeline to further attacks?
- Are all damaged pumping stations operational?
- What redundancy exists between pumping stations?
- Is Bab el-Mandeb commercially navigable?
- Are Red Sea war-risk premiums changing?
- Will ship-to-ship operations near Oman continue?
- Are tanker rates beginning to fall?
- Could another attack reverse the improvement?
- Are oil-price assumptions being revised?
- Are logistics costs falling as quickly as crude prices?
There is a useful distinction between restoring capacity and restoring resilience.
Saudi Arabia has made significant progress towards both.
But until the pipeline is operating reliably at normal rates and Red Sea shipping conditions stabilise, the restored route should still be treated as recovering infrastructure rather than completely normal infrastructure.
Risk Indicator: ELEVATED – SAUDI ARABIA, OIL LOGISTICS & PIPELINE RESILIENCE
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The information contained within these Market Alerts is provided for general market awareness and informational purposes only. It does not constitute financial, legal, investment, regulatory or insurance advice. Whilst every effort has been made to ensure accuracy at the time of publication using multiple reputable and independently verified sources, geopolitical events, legislation, regulation and market conditions may change rapidly. Readers should obtain appropriate professional advice before acting upon any information contained herein.
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