Saudi East-West Pipeline Suffers Significant Damage in Drone Attack
Energy markets are unfazed by the news as offsetting Strait of Hormuz export volume grows
U.S. officials have confirmed that Saudi Aramco's East-West Pipeline - the key bypass route carrying Gulf oil around the contested Strait of Hormuz - has been damaged in a Houthi strike. Satellite imaging analysis shows clear and substantial impacts at two pumping stations, including particularly extensive fire damage at one of them.
The news confirms early indications seen Thursday: low-resolution satellite photos revealed a large smoke plume emanating from the pipeline route, and spikes on infrared remote sensing in the same area (VIIRS / NASA FIRMS) indicated active fires. The infrared data showed a large number of additional fire locations along the line, either a sign of emergency flaring or of further damage.
In a statement, the Saudi energy ministry confirmed that the pipeline has been shut down as a precautionary measure after multiple attacks. The strikes Thursday morning resulted in multiple injuries, the ministry said.
A U.S. official said that the attack involved drones launched from a location in Iraq. If accurate, the drones - typically a slow-moving threat class - would have had to transit large swathes of Saudi airspace without interception, raising questions about detection and air defense effectiveness.
Attribution is as-yet unclear. Iranian-backed militia groups have a substantial presence in Iraq, and Yemeni Houthi forces - operating far from home - have previously used Iraqi territory to launch strikes on Saudi facilities. The Houthis have been using their own operating area next to the southwestern Saudi border to strike key Aramco facilities near the Red Sea, including the massive refinery at Jazan. Axios reports that the Trump administration has declined Saudi requests for military assistance in combating an increasingly aggressive and effective Houthi threat.
Brent crude oil fell Friday despite the news of the pipeline attack and Houthi territorial gains near Bab el-Mandeb, dropping three percent to settle at about $104.
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While the attack is unwelcome news for Saudi oil shipping out of Red Sea ports, it has been offset by favorable developments for oil shipping in the Gulf region. TankerTrackers.com reports that average daily crude oil flows out of the Strait of Hormuz have hit more than 10 million barrels per day, a significant milestone after months of Iranian restrictions on GCC export flow. The shipping surge - controversial at IMO, given the active threat of Iranian attack and associated risk to life and safety of tanker crews - is complemented by a corresponding jump in STS transfer activity off Fujairah. "Shuttle" tankers associated with GCC exporters offload their cargo to long-haul VLCCs at the comparatively safe Gulf of Oman anchorage for final delivery.
"Even with pipeline transmission now impacted, Saudi crude oil exports have been trending higher over the past couple of weeks after having picked up significantly from the kingdom's heavyweight eastern terminals. Those exports depart via the [Strait of Hormuz] under US CENTCOM protection. [Saudi Red Sea terminals] shall likely export from storage in the meantime. This is not their first rodeo," commented TankerTrackers.com.
