What happened
On Sept 13-14, drones from Iraq knocked out Saudi Arabia's East-West pipeline and a projectile hit a vessel in the Strait of Hormuz, sending Brent up $2.72 to $107.33.
Oil prices surged more than $3 on Monday, September 14, as fresh strikes on Saudi Arabia's East-West pipeline and a vessel attack in the Strait of Hormuz reignited fears of a prolonged supply disruption in the world's most critical oil corridor.
Brent crude futures rose $2.72, or 2.6%, to $107.33 a barrel and US West Texas Intermediate (WTI) climbed $2.51, or 2.5%, to $102.56, Reuters reported from New York. Earlier in the session futures jumped as much as 4% before paring gains after comments from US President Donald Trump on Ukraine-Russia energy targets and Iran talks.
The catalyst was a drone attack launched from Iraq on Thursday that knocked out Saudi Arabia's East-West pipeline, a 7-million-barrel-per-day artery that carries crude from the Persian Gulf fields to the Red Sea port of Yanbu and bypasses the Strait of Hormuz. Riyadh has not disclosed the extent of damage or a restart timeline. Analysts said the outage threatens up to 4% of global oil supply.
With the pipeline offline, Saudi exports now depend on storage at Yanbu estimated to cover only five to seven days, according to three industry sources. Commodity vessel transits through Hormuz fell to single digits per day over the weekend, well below the 10-day average of 14, while Oman's foreign minister said a Gulf-Iran meeting planned for Monday in Salalah was postponed. Houthi forces also claimed missile and drone strikes on the Khamis Mushait airbase and tightened control over Perim Island near the Bab el-Mandeb strait.
How the disruption unfolded
Key events behind the price spike:
- Thursday Sept 11 — Drones from Iraq hit Saudi East-West pipeline; Riyadh shuts the artery.
- Sunday Sept 13 — UKMTO reports projectile hits vessel in Strait of Hormuz, severe fire onboard.
- Sunday Sept 13 — Oman postpones Gulf-Iran meeting on Hormuz planned for Monday in Salalah.
- Sept 13-14 — Houthis claim strikes on Khamis Mushait airbase and move on Perim Island near Bab el-Mandeb.
What to watch next
Two near-term cushions will determine if $100+ oil sticks: pipeline repair time and Hormuz shipping risk. Saudi has not given a restart date. If Yanbu inventories run out after 5-7 days, exports must wait. Insurers have already pushed war-risk premiums higher and Hormuz transits have halved.
Why Hormuz and this pipeline matter
Before late February, about a fifth of world oil passed through Hormuz. The East-West pipeline was Saudi's workaround to keep exports flowing via the Red Sea when Hormuz is contested, and Aramco's CEO said it stabilized markets more than strategic reserve releases.
Why it matters for me
With Yanbu storage covering only 5-7 days and Hormuz transits collapsing, fuel and shipping costs could rise quickly if repairs drag on.
Money
General
Higher crude could lift petrol, diesel and jet fuel prices in India within weeks if disruption lasts beyond storage cushion.
Work
Investors
Exporters and shippers face rerouting, higher war-risk insurance and delays via Red Sea and Hormuz.
Daily Life
General
Prolonged oil spike may feed into broader inflation for transport, groceries and manufactured goods.
What to remember
One pipeline outage now puts 4% of world oil at risk.
Oil +$3 as Saudi pipeline shuts and Hormuz tanker hit — 4% of global supply at risk.
Verified sources (3)
Oil prices jump more than $3 after new strikes on Saudi, Strait of Hormuz
↗Oil prices climb over 2% after strikes on Saudi pipeline and ships in Middle East
↗Oil prices rise after Saudi Arabia shut down critical pipeline that bypasses Strait of Hormuz
↗Claims and linked sources
7 claimsOil prices jumped more than $3 on Sept 13-14, with Brent up $2.72 (2.6%) to $107.33 and WTI up $2.51 (2.5%) to $102.56, after new strikes on Saudi and Hormuz shipping.
Saudi Arabia shut its East-West pipeline after drones launched from Iraq damaged it on Thursday; the line can carry 7 million barrels per day and bypasses the Strait of Hormuz.
The pipeline outage threatens up to 4% of global oil supply, according to Reuters analysis.
A vessel was hit by a projectile in the Strait of Hormuz on Sunday, causing a severe fire onboard, with UKMTO reporting the incident.
A Gulf-Iran meeting on the Hormuz situation planned for Monday in Salalah, Oman, was postponed, Oman Foreign Minister Badr Albusaidi said.
With the pipeline offline, Yanbu port must draw on storage estimated to cover five to seven days of exports, per three industry sources.
Commodity vessel transits through the Strait of Hormuz fell to single digits per day over the weekend versus a 10-day average of 14.