Oil climbs to $106 after Saudi pipeline shutdown

September 14, 2026 (MLN): Crude oil prices surged after Saudi Arabia shut down its key East-West crude pipeline following a drone attack, intensifying concerns over global oil supplies amid the escalating conflict surrounding the Strait of Hormuz.

Currently, Brent crude futures is up, 2.06%, at $106.77 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $2.16, or 2.06%, to $106.77 per barrel by [10:27 am] PST

The pipeline was damaged by drones launched from Iraq on Thursday, prompting Riyadh to suspend operations on the vital oil route. Saudi authorities have yet to disclose the extent of the damage or provide a timeline for restoring the pipeline.

The East-West pipeline has a capacity of around 7 million barrels per day and provides Saudi Arabia with an alternative export route by transporting crude from its oil-producing regions near the Persian Gulf to terminals on the Red Sea.

Its shutdown comes at a critical time as Saudi Arabia has increasingly relied on the pipeline to divert crude exports away from the Strait of Hormuz amid the ongoing confrontation between Iran and the United States, according to CNBC.

The disruption also led to the postponement of a planned diplomatic meeting between Iran and Gulf Arab states that was scheduled to take place in Oman on Monday.

Oman’s Foreign Minister Badr Albusaidi said the regional meeting had been postponed in the interest of consensus, while reaffirming the country’s commitment to dialogue and regional stability.

Meanwhile, tensions around the Strait of Hormuz remained elevated after another tanker came under attack, triggering a severe fire onboard, according to the United Kingdom Maritime Trade Operations Center.

The Saudi pipeline has become an important mechanism for mitigating the disruption to global oil supplies caused by the Iran conflict.

Saudi Aramco CEO Amin Nasser previously said the pipeline had played a greater role in stabilizing oil markets than the large-scale release of strategic petroleum reserves led by the United States.

Saudi Arabia has also faced a series of attacks by Iran-aligned militant groups. Houthi militants in Yemen recently targeted energy facilities and other civilian infrastructure in the kingdom, with more than 70 people reportedly injured, according to Saudi state media.

The Houthis have also reportedly taken control of Perim Island in the Bab el-Mandeb Strait after capturing the port city of Mokha on Yemen’s western coast.

The developments could provide the group with a stronger position to threaten oil shipments passing through the strategic waterway, which links the southern Red Sea with global markets.

The Houthis declared a maritime embargo against Saudi Arabia in July, adding to concerns over the security of critical shipping routes and the potential for further disruptions to global crude supplies.

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