Brent Jumps on Saudi Pipeline Shutdown

2026-09-13 23:06 By Anna Fedec 1 min. read

Brent crude rose toward $108 a barrel, a 4-month high, after rallying over 9% last week, as Saudi Arabia shut a major crude pipeline following drone attacks, disrupting a key route used to bypass the Strait of Hormuz.

Saudi Arabia suspended operations on the East-West pipeline as a precaution after Thursday’s attacks, with no indication yet of when the pipeline will resume operations.

Meanwhile, talks between Iran and several Gulf nations on establishing a temporary shipping corridor through Hormuz were postponed, Oman’s Foreign Minister Badr Albusaidi said.

Reports suggested Saudi Arabia had concerns over the proposal, while Bahrain said it would not participate.

The closure of the East-West pipeline has highlighted its importance in maintaining energy flows across the Middle East as the US and Iran remained at an impasse over control of Hormuz.

The pipeline transports oil across Saudi Arabia to Red Sea ports and has a capacity of around 7 million barrels per day.



News Stream
Brent Jumps on Saudi Pipeline Shutdown
Brent crude rose toward $108 a barrel, a 4-month high, after rallying over 9% last week, as Saudi Arabia shut a major crude pipeline following drone attacks, disrupting a key route used to bypass the Strait of Hormuz. Saudi Arabia suspended operations on the East-West pipeline as a precaution after Thursday’s attacks, with no indication yet of when the pipeline will resume operations. Meanwhile, talks between Iran and several Gulf nations on establishing a temporary shipping corridor through Hormuz were postponed, Oman’s Foreign Minister Badr Albusaidi said. Reports suggested Saudi Arabia had concerns over the proposal, while Bahrain said it would not participate. The closure of the East-West pipeline has highlighted its importance in maintaining energy flows across the Middle East as the US and Iran remained at an impasse over control of Hormuz. The pipeline transports oil across Saudi Arabia to Red Sea ports and has a capacity of around 7 million barrels per day.
2026-09-13
Brent Rally Pauses on Mideast Diplomatic Efforts
Brent crude paused its rally to settle around $104 a barrel on Friday after Iranian state media said Tehran would meet Gulf states in Oman to discuss the Strait of Hormuz. Gulf Cooperation Council diplomats are expected to meet their Iranian counterpart on Monday to discuss a possible temporary arrangement for managing shipping through the strait. Adding to downward pressure, the EIA raised its 2027 US crude production forecast to 14.3 million barrels a day, while the IEA sharply cut its global oil demand outlook, forecasting a 2.5 million-barrel-a-day contraction in 2026. Meanwhile, China is on track to import roughly the same volume of crude in September as in August, with purchases recovering from June’s decade-low. Saudi Arabia shut its East-West crude pipeline as a precaution after multiple attacks, while Iran-backed Houthis reportedly advanced to Yemen’s Perim Island. Brent surged 9% on the week.
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Brent Pares Gains
Brent crude fell below $105 a barrel on Friday after Iranian state media reported plans for talks with Gulf states in Oman, suggesting diplomatic efforts are emerging despite a sharp escalation in tensions over the past week. Top diplomats from the six-member Gulf Cooperation Council are expected to meet their Iranian counterpart on Monday to discuss a possible temporary arrangement for managing shipping through the Strait of Hormuz. Meanwhile, the International Energy Agency sharply lowered its outlook for global oil demand, forecasting a 2.5 million-barrel-a-day contraction in 2026, the largest annual decline since the Covid-19 pandemic, as higher prices and tighter supplies weigh on consumption. The IEA warned demand could weaken further if the conflict persists, while OPEC cut its 2026 demand-growth forecast for a fifth consecutive time. Despite Friday’s decline, Brent rose for a second week as Houthi threats to Saudi Arabia continue to raise supply concerns.
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