Live Updates > Live Update Details
2026-09-15 19:58:09
[Saudi Pipeline Damage May Persist, Supply Shortage May Continue] ⑴ Following a drone attack, a key Saudi oil pipeline is expected to be shut down for several weeks, with two regional officials stating that repairs could take 3 to 5 weeks. ⑵ The pipeline, spanning the entire territory of Saudi Arabia and approximately 1,200 kilometers long, transports crude oil from Gulf ports to the Red Sea port of Yanbu for export. ⑶ Following the attack, Saudi Arabia pointed the finger at Iranian-backed militias in Iraq, and the pipeline and a major pumping station were damaged. ⑷ Officials stated that the pipeline might be partially operational during repairs, but the actual oil throughput could not be determined. ⑸ Analysts believe that the 3-5 week assessment is based on the assumption of no further attacks, a premise that is overly optimistic. ⑹ If the attackers possess the capability to strike again, the route may be shut down indefinitely until some agreement is reached by the relevant parties. ⑺ The Houthi rebels in Yemen have seized the Greater and Lesser Hanish Islands, located approximately 160 kilometers north of the Bab el-Mandeb Strait, further expanding the threat to Red Sea shipping routes. (8) The Houthi rebels also claimed to have launched dozens of missiles and drones at the King Khalid Air Base in Khamis Mushait, southern Saudi Arabia. (9) Global commercial fuel inventories have been declining for more than six months, and the available space in strategic oil reserves is limited. Analysts estimate that the pipeline shutdown has reduced global market supply by at least 2.5 million barrels per day. (10) Chevron's CEO stated that most of the mechanisms previously used to mitigate price and supply risks have been exhausted, and there is little buffer left in the system. (11) The US Secretary of the Interior stated that the current price volatility is temporary and that prices were already at high levels. (12) Some energy investors pointed out that the negotiating advantage usually belongs to the party with time and patience; Iran is willing to endure pain, and its people have suffered for decades.
