Saudi Arabia’s Hormuz Bypass Pipeline Proves Strategic Worth

19 Jun 2026 Issue: 69 / 25 By: Jamie Ingram

Saudi Arabia’s East-West pipeline has proven its value throughout the US-Iran conflict, enabling substantial volumes of oil to be exported since the Strait of Hormuz was shut in early March. It will remain a key strategic hedge against any attempted Iranian restrictions on Hormuz flows.

The 17 June Memorandum of Understanding (MoU) between the US and Iran is the first step towards normalizing shipping through the Strait of Hormuz following the conflict that broke out on 28 February. Over the subsequent three and a half months, Saudi Arabia’s 7mn b/d East-West crude oil pipeline emerged from obscurity and became a bedrock of the global energy system, enabling the kingdom to continue exporting around 65% of pre-conflict oil volumes.

The pipeline supplies Saudi Aramco’s 1.9mn b/d capacity Red Sea refineries, as well as the Yanbu and Yanbu South (Muajjiz) crude export terminals. It was originally built in 1981 and has gradually been expanded over the years, reaching its current capacity in 2024. (CONTINUED - 847 WORDS)