Saudi Aramco eyes resuming operation of East-West oil pipeline damaged in Houthi strikes within days

Saudi Aramco is set to restore half of its oil pipeline capacity after a recent attack by Houthi drones led to its shutdown. Oil shipments to Europe have been cut, prompting customers to seek alternatives. The Kingdom may consider dark shipments to maintain oil exports.

Saudi Aramco, the state-owned petroleum and natural gas company of the Kingdom of Saudi Arabia, is likely to return about half the capacity of its cross-country oil pipeline within days, a person familiar with the matter told Bloomberg.

The East-West Pipeline, a crucial 1,200-kilometer network that runs to the Red Sea port of Yanbu, has been vital for Saudi’s efforts to redirect its crude to coastal refineries following the transit restrictions through the Strait of Hormuz.

Attack on East-West Pipeline

The East-West Pipeline came under attack allegedly by Houthi drones launched from inside Iraq on Friday, forcing Saudi Arabia to shut it. Though the extent of the damage was unclear, initially it was estimated that the shutdown could last for weeks.

On Tuesday, Reuters, citing trade sources ‌, reported that Saudi Arabia had cut oil shipments to Europe after drone attacks, prompting top customers such as Poland to rush to seek alternatives as cargo prices topped $120 a barrel.

According to the report, Saudi Arabia informed European customers that some September-loading crude cargoes will ​be cancelled and oil loadings at the Red Sea port of Yanbu had been suspended.

It added that the Kingdom may explore the option of exporting more oil via the Strait of Hormuz ​using so-called dark shipments similar to those already used by the United Arab Emirates and Iraq.

Such shipments have allowed Gulf oil producers to export ​7 million to 9 million barrels per day, which is 30% to 40% of pre-war volumes.

A Bloomberg report added that Saudi Arabia has sold about 20 million barrels to Asian refiners, including in China, this week that can be picked up in September and October, according to traders familiar with the matter.

Saudi vs Houthis

Last week, the Iran-backed Houthis launched a major offensive in Yemen and captured the Red Sea port city of Mocha and Perim, an island located at the mouth of the Bab al-Mandeb strait. The Houthis and the Saudis have been at odds for a long time, and in July, the militia, which controls nearly one-third of Yemen’s land area, imposed a maritime embargo against Saudi Arabia, targeting vessels tied to Saudi ports or oil shipments.

On Wednesday, Reuters reported that US officials met Houthi representatives in Oman over the weekend. The meeting, which has not been made public, was held at the US Embassy in Muscat, three of the sources told Reuters.

The Trump administration designated the Houthis a "foreign terrorist organization" in March 2025, criminalising support for the group. But Washington has negotiated with them since, reaching a ceasefire in May last year after bombing the group for two months to halt a campaign of attacks on Red Sea shipping.

President Donald Trump said on Saturday the Houthis had phoned his administration asking the United States to keep out of the Yemen war. Vice President JD Vance said on Monday the US was in direct contact with the group, without giving details.

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