Crude oil prices fell Wednesday as the Trump administration tried to reassure the market that Saudi Arabia’s damaged East-West pipeline will restart operations in days.
U.S. West Texas Intermediate futures were down 2.5% to $103.19 per barrel by 10:23 a.m. ET. Brent crude, the international benchmark, traded 1.7% lower to $106.93 per barrel. Prices have rallied around 20% this month as fighting sharply escalated in the Persian Gulf.
U.S. Energy Secretary Chris Wright told CNBC on Tuesday that the pipeline outage is a “brief and temporary interruption” that “will be measured in days.”
But independent analysts warned the pipeline could remain down for weeks based on satellite images showing significant damage to a pumping station.
Vantor satellite image shows a closer view of fire-damaged structures and blackened ground at the East-West pipeline pumping station in Saudi Arabia following the September 11, 2026 drone attack and resulting fires.
Maxar | Maxar | Getty Images
The Saudis have taken “quick action” to export more oil through the Strait of Hormuz with U.S. military help while the pipeline is down, Wright said.
Four supertankers that can carry 8 million barrels total were observed loading at Saudi’s Persian Gulf ports of Ras Tanura and Juaymah on Tuesday, said Matt Smith, director of commodity research at Kpler.
“They are likely going to be part of the shuttling effort via the Omani route through the Strait,” Smith said.
Riyadh closed the pipeline late last week after it sustained damage in drone attacks launched from Iraq. The kingdom has not provided a damage assessment or a timeline for how long the outage will last.
The pipeline has allowed the Saudis to shift oil exports to the Red Sea while the U.S. and Iran battle for control over Hormuz. The strait was the Gulf states’ main export corridor before the war.
The U.S. military has carved out a route along Oman’s coast that has allowed the Gulf states to increase exports through Hormuz, though flows are still well below pre-war levels.
The journey remains dangerous even with U.S. protection as Iran continues to attack tankers. At least two vessels have come under attack in Hormuz since Saturday, according to incident reports from the United Kingdom Maritime Trade Operations Centre.