Saudi East-West Pipeline to Resume Operations Soon, U.S. Energy Secretary Says
Pipeline outage follows drone attack; U.S. crude prices rise above $105 per barrel.
Quick Look
- Energy Secretary Chris Wright announced that Saudi Arabia's East-West crude oil pipeline, damaged by a drone attack from Iraq, will resume operations within days.
- The outage has contributed to a 5% rise in U.S. crude oil prices.
AI-generated summary
Why It Matters
The East-West pipeline is a critical route for Saudi oil exports to the Red Sea. It was recently targeted by a drone attack originating from Iraq.
Saudi Arabia's critical East-West crude oil pipeline will start operating again "very soon," U.S. Energy Secretary Chris Wright told CNBC in an interview Tuesday.
"This will be a brief and temporary interruption," Wright told CNBC's Morgan Brennan in Houston. "It will be measured in days."
The Saudis closed the pipeline late last week after it sustained damage in a drone attack launched from Iraq. Wright said Iran-backed proxy groups were responsible for the strike.
Riyadh has relied on the pipeline to shift crude oil exports to the Red Sea as the U.S. and Iran battle for control over the Strait of Hormuz.
The Saudis are now shifting some oil exports back through Hormuz with U.S. military support while the pipeline is down, Wright said.
U.S. crude oil prices have gained more than 5% this week to trade above $105 per barrel, as the market tries to assess how big a supply disruption the pipeline outage will cause.
What to Watch
AI outlook — possibilities, not facts
Pipeline operations to resume within days.
Likely · Within days
Open Questions
- Specific identity of the Iran-backed proxy groups.
- Exact timeline for full pipeline restoration.
