Saudi Arabia has suspended some oil shipments to European customers after drone attacks damaged a key export pipeline, increasing pressure on global energy markets as conflict continues to disrupt vital Middle Eastern supply routes.
The attacks on the kingdom’s East-West oil pipeline have disrupted a critical alternative to the Strait of Hormuz, through which Saudi Arabia had been able to route crude towards the Red Sea and reduce its exposure to disruption from the conflict with Iran.
Saudi officials told European customers on Tuesday that some oil loadings at the Red Sea port of Yanbu had been suspended, while some cargoes scheduled for delivery in September had been cancelled.
The pipeline, which runs across Saudi Arabia from the country’s eastern oilfields to the Red Sea, had previously transported between four million and five million barrels of crude a day, equivalent to roughly 4 to 5 per cent of global supply.
The disruption comes as Houthi forces, backed by Iran, have tightened pressure on shipping through the Red Sea, another important route for energy and commodities. Iraqi militants are also suspected of involvement in the attacks on Saudi infrastructure.
The developments have increased pressure on Prime Minister Andy Burnham to respond to Saudi requests for assistance against the Houthis and to strengthen the defence of the kingdom’s energy infrastructure.
The UK has agreed to send military advisers to Saudi Arabia, although Burnham is understood to be “considering” further options. The issue is expected to feature in discussions with Donald Trump when the two leaders meet next week.
The United States has so far declined Saudi requests for military action against the Houthis, despite Crown Prince Mohammed bin Salman reportedly urging Trump twice to launch strikes against the group.
Chris Wright, the US energy secretary, sought to reassure markets by telling CNBC that crude would begin flowing through the pipeline again within days.
The disruption nevertheless comes at a politically sensitive moment for Burnham’s government, which is preparing its first Budget next month and faces the prospect of higher energy costs feeding through into inflation.
A government spokesperson said: “We continue to work with partners to support regional stability, protect civilians and support humanitarian access in Yemen.”
The security situation has deteriorated further inside Saudi Arabia. Jeddah airport was closed on Tuesday and authorities issued emergency alerts across the country.
At 12.45am, Saudi air defences intercepted a Houthi-launched drone after it entered prohibited airspace above Mecca, according to the Saudi-led coalition operating in Yemen.
Coalition spokesperson Turki al-Malki said it was the second attempt to target the holy city, describing the security of Mecca as a “red line”.
Saudi Arabia could increase the use of so-called dark shipments, allowing oil cargoes to be moved with limited transparency, according to an oil trading source cited by Reuters.
The escalation threatens to add to inflationary pressures in Britain, where household energy bills are expected to rise sharply next year if the conflict keeps oil and gas prices elevated.
Higher energy costs could push UK inflation towards 4 per cent, complicating the government’s economic plans.
Burnham has also faced calls to designate the Houthis as a terrorist organisation, following action by the US.
The Houthis have attacked commercial and military shipping in the Red Sea since late 2023, forcing vessels to divert around the region and disrupting international trade. The group has also launched drone and missile attacks against Israel.
The US and UK conducted joint strikes against Houthi targets in 2024 in response to attacks on shipping, while the US carried out further air strikes against the group in January 2025.
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