Satellite Imagery Reveals Damage to Saudi Oil Pipeline

Satellite imagery indicates significant damage to a key oil pipeline in Saudi Arabia following a strike last week. Experts have suggested that repairs could take over a month, potentially impacting oil prices. The damage is primarily located at a pumping station along the East-West Pipeline, which Saudi Arabia has increasingly utilized to export crude oil via the Red Sea, avoiding the Strait of Hormuz, where there have been previous attacks on shipping. The Saudi government has attributed the strike to Iranian-backed militias in Iraq, amidst a backdrop of increased missile and drone attacks by Yemen's Houthi group, which is also supported by Iran. In response, Saudi Arabia has conducted strikes on Houthi-controlled regions in western Yemen. Additionally, satellite images have revealed damage to Saudi Arabia's King Khalid Air Base, which was also targeted by Houthi strikes last week. The Saudi government announced it would respond 'firmly' to Houthi attacks. The Houthis have intensified their campaign, recently gaining control of significant territory along Yemen's southwestern coast, which enhances their ability to enforce a blockade on Saudi shipping. Following the announcement of the pipeline's closure, oil prices have risen, with Brent crude trading at $108 per barrel on Tuesday. Analysts from trade intelligence firm Kpler estimate that the pipeline's closure could reduce oil supplies by approximately 3.6 million barrels per day, representing about 3.6% of global demand. Homayoun Falakshahi, head of crude oil analysis at Kpler, stated that the damage could take four to six weeks to repair, depending on spare parts availability and supply chain issues. Anne-Sophie Corbeau from the Center on Global Energy Policy noted that recent strikes signal vulnerabilities in alternative routes for oil transport. The Houthis have previously targeted other Saudi oil infrastructure, leading to operational suspensions. The Saudi-led coalition reported that a recent Houthi missile and drone attack injured 13 individuals, claiming the targets were civilian objects. The Houthis countered that Saudi Arabia conducted over 50 strikes in western Yemen within 24 hours. The UN Refugee Agency has reported that more than 100,000 people have been displaced due to the renewed conflict.