Drone attacks attributed to Iran-backed militias struck Saudi Arabia’s East-West pipeline around September 11, 2026, severing an alternative export route after the Strait of Hormuz became effectively impassable. Brent crude rose to $108 per barrel, its highest level since May 2026, as markets assessed the possibility that about 4% of global oil supply could remain offline for weeks. The pipeline can carry up to 7 million barrels per day and had been moving approximately 4 million bpd to Yanbu, Saudi Arabia’s Red Sea export terminal. Yanbu loadings have been suspended, with remaining inventories projected to last five to seven days. Saudi production had already fallen to 6.238 million bpd in August 2026, its lowest level since 1990, while exports dropped to 3.2 million bpd, the lowest in at least 13 years. Houthi forces have intensified attacks on Saudi targets and threatened Red Sea shipping, while Iran-backed groups operating from Iraq carried out the pipeline strikes. The Strait of Hormuz, normally Saudi Arabia’s primary export corridor through eastern terminals, remains effectively closed. Repairs could take from several days to as long as eight weeks, depending on the damage. The disruption adds supply-side inflationary pressure as major economies seek stable energy prices to support growth, with analysts warning of possible effects on consumer prices globally. If Yanbu’s inventory runs out before repairs are completed, traders will price in scarcity rather than risk.