Middle East Oil Supply Faces Crisis as Pipeline Shuts and Transit Dips

Tracking data indicates only 14 commodity vessels crossed the strait over the weekend, a stark contrast to the standard 10-day average. While four ships departed the Persian Gulf, ten entered, primarily carrying dry bulk and metals. These figures exclude vessels operating with deactivated positioning systems, suggesting the actual volume of activity may be even more obscured by security concerns. Ship owners and exporters are increasingly avoiding the region following a series of strikes on tankers and persistent threats from Houthi forces targeting Saudi shipments.

The suspension of the East-West pipeline, which typically allows Saudi Arabia to export crude via the port of Yanbu, compounds the supply threat. Riyadh characterized the closure as a precautionary measure following a Thursday drone strike on the infrastructure, reportedly launched from Iraqi territory near the Iranian border. Markets reacted swiftly to the dual pressure on Hormuz and Red Sea logistics; Brent crude climbed to $108 per barrel, while WTI Crude rose to $103 during early Asian trading.