Traders and oil buyers warn that if Saudi Arabia cannot reopen the key oil pipeline damaged by a drone attack, global oil supply could decline suddenly by 4% within a few days.
Foreign news agencies reported on 13 Sep 2026 that oil traders warned if Saudi Arabia fails to restore operation of the East-West Pipeline to the Red Sea within a few days, export oil reserves will be exhausted, causing an immediate 4% drop in global crude oil supply—about 4 million barrels per day.
Saudi Arabia ordered the pipeline closed after a drone attack on Friday, 11 Sep, suspected to be carried out by Iran. Saudi authorities have not confirmed a repair timeframe, but sources say it could take anywhere from a few days up to 5–6 weeks.
Previously, this pipeline allowed Saudi Arabia to transport oil bypassing the Strait of Hormuz to the Yanbu port on the Red Sea coast. With the pipeline offline, oil reserves at Yanbu and in Egypt can only support exports for another 5 to 7 days.
This new supply disruption will further worsen the global energy crisis, pushing oil prices and inflation higher, and driving U.S. government bond yields to their highest levels since the 2008 financial crisis.
Amid ongoing warfare and threats from Houthi rebels, navigation in critical Middle Eastern waterways—the Strait of Hormuz and the Red Sea—has slowed. The International Energy Agency (IEA) reported Saudi oil production in August fell to just 6.2 million barrels per day, the lowest in over 30 years.
.cna