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Oil prices jumped above $100 per barrel on Tuesday, with Brent crude climbing more than $2.80 to cross $108.50 and WTI crude rising roughly $3.50 to trade above $104.50. Diesel hit a new national average high of $6.23 on September 14, according to AAA. The East-West pipeline, which has a capacity of 7 million barrels per day and moves about 4% of the global oil supply according to Reuters, was shut down on September 11 after drone attacks from Iran-backed fighters in Iraq.

The pipeline carries oil to the port of Yanbu on the Red Sea, allowing exports to bypass the Strait of Hormuz, which remains affected by conflict between the U.S. and Iran. Saudi Arabia has reportedly told European buyers some September cargo loadings will be canceled, per Reuters. Saudi exports had recovered to roughly 5 million barrels per day in June and toward 4 million barrels per day in early September, with about 1 million moving through Hormuz and the balance through Yanbu.

Analysts warn oil prices could rally sharply if the pipeline remains offline beyond an estimated five to seven day inventory cushion. AP News reported that flows through the pipeline could resume in three to five weeks. Iran-backed Houthi rebels have also seized Perim Island and threatened to blockade vessels carrying Saudi oil through the Bab el-Mandeb Strait. About 25 million barrels of oil per day transited the Strait of Hormuz and the Bab el-Mandeb Strait during the first half of 2025, according to the U.S. Energy Information Administration.