Saudi Arabia Restarts Oil Pipeline Amid US-Iran Diplomacy

The Government of Saudi Arabia restarted operations at its East-West pipeline on September 22 following an 11-day shutdown caused by drone attacks on September 11. The strikes, attributed to Iraqi militia, damaged three pumping stations and halted crude loadings at the Red Sea port of Yanbu. To maintain supply during the outage, Saudi Aramco rerouted exports through the Strait of Hormuz and utilized ship-to-ship transfers in Oman and Egypt.

While pumping has resumed, the pipeline is currently operating at a low rate. Officials estimate it will take several days to reach 40% capacity and six to eight weeks to return to the full flow of four million barrels per day. The restoration of this critical route, which allows the kingdom to bypass the Strait of Hormuz, contributed to a decline in oil prices, pushing Brent crude toward $97 per barrel.

Simultaneously, diplomatic tensions between the United States and the Government of Iran shifted. Iranian officials proposed reopening the Strait of Hormuz within seven days if the U.S. eases military pressure and lifts its blockade of Iranian ports. While the Fars News Agency initially denied these reports, a spokesman for the Islamic Revolutionary Guard Corps later indicated a willingness to negotiate. President Donald Trump reported productive meetings with an Iranian delegation at the United Nations General Assembly, though he maintained that a peace deal would not occur until after the November midterm elections and threatened the annihilation of Iran.