Saudi Aramco has suspended crude oil supplies to Indian refiners after drone strikes damaged its East West pipeline. The 1,200 kilometre pipeline carries nearly seven million barrels of crude per day from eastern oil fields to the Red Sea. The attack, claimed by Iran backed militias, forced an immediate shutdown and highlighted the vulnerability of Gulf energy routes.
Indian refiners have been informed that deliveries will remain halted until further notice. The suspension underlines India’s dependence on Saudi Arabia for crude imports and raises concerns about supply security. Yemen’s Houthi militants also targeted Saudi energy and civilian sites along the Red Sea coast, adding to regional instability.
Earlier this year, Saudi Arabia relied heavily on the East West pipeline when traffic through the Strait of Hormuz was disrupted by Iranian attacks. The latest incident again shows how conflicts in the Gulf can quickly affect global energy flows.
Oil markets reacted with caution. Brent crude fell 1.6% to 103.17 dollars per barrel, while West Texas Intermediate dropped 0.6% to 101.30 dollars. Brent is heading for its first weekly loss in three weeks, down 1.4%.
