Saudi Arabia restarts east-west oil pipeline, prepares to resume crude oil exports

Saudi Arabia has restarted its east-west oil pipeline and is preparing to resume crude oil exports from the Yanbu port later on Tuesday, according to trade sources reported by @FirstSquawk. This development comes after the pipeline was shut down due to drone attacks earlier in September 2026, which had led to the suspension of crude loadings at Yanbu and the cancellation of some late-September cargoes. The pipeline is a key infrastructure piece, allowing Saudi Arabia to export oil to the Red Sea market while bypassing the Strait of Hormuz. Reports had indicated that crude loadings through Yanbu were significantly reduced from earlier levels this year. Key Takeaways The resumption of the Saudi east-west oil pipeline appears to suggest that Saudi Arabia is moving towards full operational capacity for this critical infrastructure. Market pricing indicates a significant increase in YES probability for the pipeline restarting by the end of September, with a notable rise in odds for the October 1 market. The announcement may indicate that damage to the pipeline was less severe than feared, allowing for a quicker-than-expected restoration of operations. What to Watch The next steps involv...