Yemen’s Houthis said on Saturday they had targeted the Saudi East-West pipeline and its crude pumping stations. They also claimed strikes on an Aramco facility in Yanbu and the Rabigh refinery, Reuters reported. However, Saudi Arabia did not confirm any of these claims.
Why the Saudi East-West pipeline matters
The pipeline runs about 1,200 km from the east of the kingdom to Yanbu on the Red Sea. Since the war has largely shut the Strait of Hormuz, it has carried most Saudi crude exports. In fact, it was down for two weeks after drone attacks on its pumping stations on 10 September. That also halted loadings at Yanbu.
Meanwhile, the Saudi-led coalition said its air defences destroyed a ballistic missile fired towards Riyadh.
What to watch
So far, there is no sign that flows have stopped. Still, every claim adds to the risk premium in crude. Brent settled at $116.72 on Friday. Read our report on that move.
For a deeper analysis, read: The East-West Pipeline: Why Saudi Arabia’s Hormuz Bypass Is Now the Market’s Weak Point
