Saudi Arabia’s East-West Pipeline Hits 7 Million Barrels Per Day as Hormuz Closure Enters Fifth Week

Hormuz Crisis Week Five: Saudi East-West Pipeline

Saudi Arabia’s East-West Pipeline Hits 7 Million Barrels Per Day as Hormuz Closure Enters Fifth Week

Saudi Arabia’s East-West Pipeline Hits 7 Million Barrels Per Day as Hormuz Closure Enters Fifth Week

Hormuz Crisis Week Five: Saudi East-West Pipeline Now Global Oil Market Lifeline

Coordinated strategic reserve releases totaling around 400 million barrels are now underway globally — the largest on record. Analysts at Goldman Sachs and S&P Global have already revised 2026 price forecasts upward. If Hormuz traffic does not recover by mid-April, industry sources warn prices could reach $150 to $200 per barrel in a worst-case scenario.

The UAE’s Habshan-Fujairah pipeline is running a similar bypass operation, providing a secondary outlet for Gulf producers. Together, the two pipelines represent the primary physical alternative to Hormuz for Arabian Peninsula crude exporters.

U.S. retail gasoline averaged between $3.91 and $3.98 per gallon as of late March, with further pressure expected when Monday trading opens. President Trump’s five-day diplomatic deadline for Iran expired around March 28 without a ceasefire or Hormuz agreement. Analysts see no near-term resolution.

Saudi Arabia’s Petroline was rarely operated near full capacity in peacetime. That has changed. It is now one of the most consequential pipelines in the global oil market.

FAQ

  • What is Saudi Arabia’s East-West Pipeline? It is a 1,200-kilometer crude oil pipeline running from eastern Saudi Arabia to the Red Sea port of Yanbu, built to bypass the Strait of Hormuz.
  • Why is the Petroline running at full capacity in 2026? U.S. and Israeli military strikes against Iran have effectively closed the Strait of Hormuz, forcing Saudi Arabia to reroute crude exports overland.
  • How much oil is the East-West Pipeline moving right now? Saudi Aramco confirmed on March 28, 2026, that Petroline is operating at its maximum capacity of 7 million barrels per day.
  • Will the Saudi pipeline fix the global oil supply shortage? The pipeline partially offsets the Hormuz disruption but cannot replace the roughly 20% of global oil supply that normally transits the strait.

About Author

Leave a Reply

Your email address will not be published. Required fields are marked *

Please enter CoinGecko Free Api Key to get this plugin works.