Saudi pipeline outage threatens loss of 4% of global oil supply
A drone attack on Saudi Arabia's major east-west oil pipeline has forced a shutdown, threatening to cut 4% of the global oil supply within days. With storage stocks at Red Sea ports rapidly depleting, the kingdom faces a critical deadline to resume operations or risk a severe escalation in the ongoing global energy crisis.
Why it matters
The potential loss of 4% of global oil supply threatens to exacerbate record-high fuel prices, worsen global inflation, and further destabilize international financial markets.
Saudi Arabia will run out of oil stocks for exports if it doesn’t restart its major pipeline to the Red Sea within days, leading to a loss of up to 4% of global supply, Saudi oil buyers and traders said.
A further decline in Saudi flows will worsen the global supply crunch, which has already pushed global fuel prices to record highs, spurred inflation around the world and sent U.S. bond yields to the highest levels since the 2008 financial crisis.
Since drone attacks forced Saudi Arabia to shut its huge east-west oil pipeline on Friday (September 11, 2026), Riyadh has not given full details about the extent of the damage or how long the route will stay off-line.
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