Saudi Arabia Restores Red Sea Oil Flows via East-West Pipeline

Daily throughput through the system has climbed to roughly 4 million barrels, marking a significant recovery after drone strikes forced a full shutdown in September. Aramco successfully restarted operations on September 22, allowing crude loadings at the Red Sea port of Yanbu to resume. Standard Chartered data indicates a sharp rebound in total exports, which rose to approximately 6.9 million barrels per day in September, up from the August low of 2.45 million.

While regional export volumes—excluding Iran—have returned to near pre-war levels of 16.5 million barrels per day, the logistical landscape remains strained. Only 60% of these shipments currently traverse the Strait of Hormuz, down from 83% previously. The shortfall is managed through a complex web of alternative pipelines, ship-to-ship transfers, and lengthened maritime routes. These workarounds carry heavy costs, as freight rates and war-risk insurance premiums remain high. Security concerns also persist, highlighted by recent Houthi threats against Saudi infrastructure, though officials maintain that pipeline operations remain unaffected by regional skirmishes.