Recent satellite images have unveiled significant destruction to a vital oil pipeline in Saudi Arabia, resulting from a targeted attack last week. Experts indicate that the necessary repairs could extend beyond a month, potentially driving oil prices even higher.
The most severe damage has occurred at a pumping station on the East-West Pipeline, which Saudi Arabia has increasingly depended on for crude oil exports via the Red Sea. This route has gained importance due to security concerns in the Strait of Hormuz, where Iranian and US military vessels have clashed during an ongoing conflict.
The Saudi government has attributed the attack on the pipeline to Iranian-backed militias in Iraq. This incident follows a series of missile and drone assaults on southwestern Saudi Arabia carried out by the Houthi group from Yemen, which also receives support from Iran. In response, Saudi Arabia has launched retaliatory strikes on Houthi-controlled regions in western Yemen.
Impact on Oil Prices and Supply
As a direct result of the pipeline closure, the price of oil has seen a notable increase. Brent crude oil prices surged to approximately $108 per barrel on Tuesday, having reached $109.80 the previous day. Experts from the trade intelligence firm Kpler have warned that the halt in operations could diminish global oil supply by as much as 3.6 million barrels per day, accounting for about 3.6% of worldwide demand.
Homayoun Falakshahi, the head of crude oil analysis at Kpler, stated that resolving the damage could take between four to six weeks, factoring in the availability of spare parts and disruptions in supply chains. Anne-Sophie Corbeau from Columbia University’s Center on Global Energy Policy remarked that pipelines are particularly vulnerable to attacks, indicating that alternative routes to avoid the Strait of Hormuz may not be as secure as previously thought.
Escalation of Conflict in the Region
The Houthis have intensified their assault on Saudi oil infrastructure, utilizing drones and missiles, which has led to the suspension of certain operations. Furthermore, military bases have also been targeted, as evidenced by new satellite images depicting damage to the King Khalid Air Base near Khamis Mushait. The Houthis claimed responsibility for the attack, which was aimed at facilities used for airstrikes on Yemen.
Reports indicate that at least three hangars at the Royal Saudi Air Force base, which houses US-made F-15 fighter jets, have been compromised. The Saudi-led coalition fighting against the Houthis announced that a recent missile and drone attack had resulted in injuries to 13 individuals and targeted what they described as civilian infrastructure. The Houthis have countered, alleging that Saudi Arabia conducted over 50 strikes in western Yemen within a 24-hour period.
The ongoing conflict has led to significant humanitarian consequences, with the UN Refugee Agency reporting that over 100,000 individuals have been displaced internally due to the resurgence of violence.
