Saudi Arabia Restores Major Oil Pipeline After Recent Attacks, Will Prices Drop?

Saudi Arabia’s energy ministry confirmed on April 12 that it had restored full pumping capacity on its East-West pipeline, returning throughput to approximately 7 million barrels per day after attacks earlier this month cut output.

The recovery comes as US-Iran peace talks in Islamabad collapsed without an agreement, leaving energy markets facing renewed uncertainty ahead of Monday’s open.

What Happened to Saudi Oil Infrastructure

Recent attacks during the US-Iran war disrupted an estimated 600,000 barrels per day of Saudi production. The Manifa field lost approximately 300,000 bpd, and the Khurais field saw a similar reduction. Moreover, it also cut East-West pipeline throughput by 700,000 bpd.

“An official source at the Ministry of Energy stated that important energy facilities in the Kingdom have recently been subjected to multiple attacks, including oil and gas production, transportation, and refining facilities, as well as petrochemical facilities and the electricity sector in Riyadh, the Eastern Province, and Yanbu Industrial City,” the officials wrote.

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The energy ministry stopped short of naming the attacker directly, though Riyadh has been intercepting waves of Iranian drones and missiles throughout the war. JPMorgan analysts estimated the combined damage at roughly 10% of Saudi Arabia’s pre-conflict crude exports, noting it represented a “measurable supply shock.” 

In a recent update, the energy ministry said the East–West pipeline and Manifa output have been restored. However, work on the Khurais field is still underway and will be announced upon completion.

“Ministry of Energy announced the success of operational and technical efforts in restoring the full pumping capacity through the East–West pipeline, amounting to approximately seven million barrels per day, and recovering the affected volumes from the Manifa field production of around 300,000 barrels per day, all within a short period of time,” the press release read. “With regard to the Khurais field, work is still ongoing to restore full production capacity, and this will be announced upon completion.”

The ministry added that Aramco’s rapid restoration demonstrated its “high operational resilience and crisis management efficiency.”

US Iran Failed Talks Add Pressure to Monday’s Open

The pipeline fix landed hours after Vice President JD Vance confirmed that 21 hours of negotiations with Iran in Islamabad produced no deal. The two sides are still divided on key issues, including the Strait of Hormuz and Iran’s nuclear program.

The strait normally carries approximately 20% of global seaborne oil. The International Energy Agency has called the disruption the largest supply shock in the history of the global oil market. 

Oil prices have surged since the conflict began in late February. The conflict has also rattled food, aluminum, and liquefied natural gas markets. 

Saudi Arabia’s partial recovery helps, but it cannot replace the full volume lost from the Hormuz disruption. Monday’s market opening will test whether the pipeline restoration can offset the diplomatic failure in Islamabad.

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