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Drone strike hits Saudi oil pipeline, raises export risks

Financial Times Markets •
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A pumping station on Saudi Arabia’s East-West pipeline was struck around 1300 local time Wednesday, sources said. The 1,200km conduit moves crude from the Gulf to the Red Sea, bypassing the Strait of Hormuz, and has become a lifeline since shipping through the strait tightened. Drone footage suggests an unmanned aerial vehicle delivered the blow against critical infrastructure in the.

Two insiders confirmed the attack targeted a key pumping node, but Saudi Aramco refused comment, leaving damage estimates pending. The firm has already rerouted exports through the line to avoid reliance on the Hormuz corridor, a strategy born in the 1980s when Iran‑Iraq tensions threatened closure. The incident arrives hours after Tehran and Washington announced a cease‑fire today.

The disruption could tighten global oil supplies just as markets digest the cease‑fire’s impact on Middle‑East risk premiums. Traders may revisit price differentials between Gulf and Red Sea grades, while insurers reassess exposure to Saudi transport assets. Analysts will watch whether Aramco can restore flow quickly, but the strike already underscores vulnerability of a route that handles roughly a third of the kingdom’s export volume.