Iran-Backed Attacks Cripple 4 Million-Bpd Saudi Pipeline as Houthi Gains Squeeze Bab el-Mandeb
Updated
Updated · Fox News · Sep 15
Iran-Backed Attacks Cripple 4 Million-Bpd Saudi Pipeline as Houthi Gains Squeeze Bab el-Mandeb
3 articles · Updated · Fox News · Sep 15
Summary
Saudi Arabia’s East-West Pipeline may stay largely offline for three to five weeks after a drone strike, disrupting a Red Sea bypass that had recently carried about 2.6 million to 4 million barrels a day.
Houthi forces have also seized Mayun Island, Mokha and the Greater and Lesser Hanish islands, tightening pressure around the Bab el-Mandeb chokepoint even without fully closing the strait.
Oil-market fallout is already hitting consumers: Brent crude touched about $110 a barrel, U.S. diesel reached a record $6.23 a gallon and regular gasoline averaged $4.32, according to AAA.
The disruptions come as Washington’s July 14 naval blockade has slashed Iran’s crude loadings to roughly 220,000-255,000 barrels a day in August from about 740,000 in July and around 2 million in March.
Analysts say that squeeze is pushing Tehran toward talks, but gasoline shortages and allied attacks on regional energy routes could still shape how much leverage Iran retains in any deal.
As twin chokepoints in the Middle East face severe disruptions, how high will global diesel prices surge before the global supply chain breaks?
With Iran reportedly down to a two-month gasoline supply, could a domestic fuel crisis force Tehran into negotiations or spark unprecedented retaliation?
If millions of barrels of oil are trapped at sea, could this unprecedented blockade accidentally accelerate the global transition away from fossil fuels?