It was utterly unexpected: after the U.S. imposed a blockade on the Strait of Hormuz, Saudi Arabia—the very first country to turn against Washington—was its longtime, ironclad ally.

It was utterly unexpected: after the U.S. imposed a blockade on the Strait of Hormuz, the first country to turn against Washington was none other than Saudi Arabia—the U.S.’s ironclad ally for four decades. This close partner directly pressured Washington to back down immediately, warning that failure to do so would sever their relationship entirely. On April 13, The Wall Street Journal reported that Saudi energy officials urgently contacted the U.S. government, explicitly demanding it abandon the Hormuz blockade and return to negotiations. Their reasoning was blunt: 'You two may be angry at each other—but don’t drag innocent bystanders into your fight.' Even more pointed was their warning: if the U.S. persisted with the blockade, Iran might pressure the Houthi movement to seal off the Bab el-Mandeb Strait—the Red Sea waterway that now serves as Saudi Arabia’s sole lifeline for oil exports. This sounded like mediation—but was in fact an ultimatum. Saudi Arabia’s subtext was clear: 'Cut off my revenue stream, and even brothers will part ways.' Why such urgency? Because America’s opening move landed squarely on its ally’s head. The story begins two months earlier. On February 28, hostilities erupted between the U.S. and Iran, disrupting traffic through the Strait of Hormuz. At the time, Saudi Arabia quietly breathed a sigh of relief—'We have a backup plan.' That plan is the East-West Pipeline: a 1,200-kilometer-long artery built during the Iran-Iraq War in the 1980s. It transports Persian Gulf crude directly to the Red Sea port of Yanbu, bypassing the Strait of Hormuz entirely. On April 12, Saudi Arabia’s Ministry of Energy announced full restoration of the pipeline’s capacity—7 million barrels per day—and confirmed Yanbu Port’s export capacity had rebounded to 5 million barrels per day, restoring pre-war oil export levels. Saudi Arabia’s strategic pivot appeared to be working flawlessly. The Houthis even offered reassurance: they would not attack Saudi vessels—as long as regional stability held and Saudi Arabia refrained from meddling in the U.S.-Iran confrontation. Then, on April 12, Trump announced the Hormuz blockade—pushing Saudi Arabia to the brink. Would Iran sit idle? Of course not. Saudi Arabia’s worst-case scenario loomed: Iran pressuring the Houthis to close the Bab el-Mandeb Strait. That would leave Riyadh doubly trapped—unable to export via Hormuz *or* Bab el-Mandeb—leaving 7 million barrels of oil stranded daily at port, triggering instant economic collapse. Thus, Saudi Arabia’s abrupt reversal wasn’t moral awakening—it was a visceral, survival-driven reflex. 'Cutting off someone’s livelihood is like killing their parents'—in the Middle East, this truism carries more weight than any diplomatic rhetoric. Yet here lies an even more ironic twist: the more frantic Saudi Arabia grows, the clearer it becomes that U.S. Middle East policy has descended into schizophrenia. Why does Saudi Arabia dare to defy Washington? Because it has done the math: American protection is unreliable; Iranian retaliation is unavoidable; only self-reliance offers salvation. But the most potent card remains Iran’s 'Bab el-Mandeb option.' The Bab el-Mandeb Strait—linking the Red Sea and the Gulf of Aden—is just 30 kilometers wide at its narrowest point, and over 9.3 million barrels of oil pass through it daily. The Houthis control large stretches of coastline near the strait; during the 2024 Gaza war, they severely disrupted shipping there, halving maritime traffic. Should Iran pressure the Houthis to block the strait again, Yanbu Port would become a dead end—and the 7 million barrels per day flowing through the East-West Pipeline would have nowhere to go. Indeed, on April 5, Ali Akbar Velayati, Foreign Affairs Advisor to Iran’s Supreme Leader, declared: 'The Bab el-Mandeb Strait is as vital as the Strait of Hormuz. If the White House repeats its foolish mistakes, one single move could halt global energy and trade flows.' On April 13, Iran’s state television issued a stark headline: 'Blockading Iran at sea?'

Signals of the restart of Saudi Arabia’s East-West Crude Oil Pipeline—and the diplomatic de-escalation signaled by Iran’s president attending the UN General Assembly—are jointly suppressing the geopolitical risk premium that had surged sharply due to earlier Middle Eastern supply disruptions.

Signals of the restart of Saudi Arabia’s East-West Crude Oil Pipeline—combined with diplomatic de-escalation expectations triggered by Iran’s president attending the UN General Assembly—are jointly suppressing the geopolitical risk premium that had surged sharply due to earlier Middle Eastern supply disruptions. On Tuesday, Bloomberg, citing informed sources, reported that Saudi Arabia is in the early stages of restarting its East-West Pipeline, aiming to resume crude oil exports via the port of Yanbu later this week. Following the news, Brent crude extended its decline on Tuesday, falling below the $100-per-barrel threshold. Meanwhile, according to CCTV International News, today (September 22), Iranian President Masoud Pezeshkian departed Tehran aboard a special flight for New York to attend the high-level week of the 81st session of the United Nations General Assembly. He is scheduled to deliver a speech at the General Debate on the morning of September 23 local time—equivalent to tomorrow evening in Beijing time. The convergence of these two developments marks a turning point in market sentiment. However, analysts caution that uncertainties remain regarding the pipeline’s restoration timeline, and whether U.S.-Iran negotiations will yield substantive progress remains unclear—meaning the sustainability of the geopolitical risk premium’s retreat is still uncertain. Pipeline Restart: A Critical Detour from the Strait of Hormuz to the Red Sea The East-West Pipeline is Saudi Arabia’s core infrastructure for bypassing the Strait of Hormuz and delivering crude oil to the Red Sea port of Yanbu. The pipeline was struck by a drone launched from Iraq on September 10, damaging a pumping station and forcing Saudi Aramco to urgently reroute exports back to the Persian Gulf. Recently, numerous tankers have been loading at the Ras Tanura terminal. According to Bloomberg, Saudi Aramco has since been racing against time to bypass the damaged pumping station and partially restore pipeline throughput—while targeting full-capacity operation within approximately six weeks.

Saudi Arabia Restarted East-West Oil Pipeline, Resumes Yanbu Exports

Sep 22, 2026

Saudi Arabia restarted its East-West Pipeline and may resume exports from Yanbu following drone attacks. Sources report low-rate pumping has resumed, though Saudi Aramco has not yet officially commented on the situation.

reuters

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