Saudi Arabia Resumes Oil Exports via East-West Pipeline to Bypass Hormuz
Key Facts
Saudi Arabia has resumed oil exports through the strategic East-West pipeline terminating at the Red Sea. Bloomberg reported that the move follows Saudi Aramco's successful repairs to a pumping station previously damaged in a drone attack, enabling the transport of up to 7 million barrels per day to the port of Yanbu. According to Kpler data, oil flows through the Strait of Hormuz have already recovered to approximately two-thirds of pre-war levels driven by the surge in Saudi exports.
President Donald Trump rejected an Iranian proposal for a seven-day ceasefire in exchange for opening the Strait of Hormuz, maintaining a firm diplomatic stance. The restart of the pipeline reduces the geopolitical risk premium on energy prices by providing a secure alternative for supplies destined for Asian and European markets. This recovery in flows coincides with reports that Saudi Aramco began rebuilding pressure in the line last week to ensure the resumption of meaningful overseas shipments.