Saudi Arabia Restarts Critical Hormuz Bypass Pipeline
Saudi Arabia has resumed oil exports through its critical East-West pipeline, restoring access to Red Sea loading facilities that bypass the Strait of Hormuz, Bloomberg reports. The restart coincides with Kpler data from late last week showing Hormuz oil flows have recovered to about two-thirds of prewar levels, suggesting a recovery in Gulf energy flows and an erosion of Tehran's leverage.
Overseas shipments have restarted, Bloomberg reported, citing a person with direct knowledge of the operation. Saudi Aramco began testing the pipeline and rebuilding pressure last week, aiming to resume meaningful flows by the weekend.
In a separate report last Wednesday, Bloomberg reported that Saudi Aramco was working quickly to repair the damaged section of the pipeline after a drone attack destroyed a pumping station.
A successful restart of the pipeline, which can carry 7 million barrels of crude per day to Yanbu on the Red Sea while bypassing the Hormuz chokepoint, would likely provide welcome relief for Europe, which had crude cargoes for this month canceled because of the disruptions. The Saudis have already indicated a near-term resumption of crude loadings for Asian buyers.
With the East-West pipeline set to ramp up and the Saudis beginning to export crude from the Red Sea once again, independent oil research firm Commodity Context cited Kpler data over the weekend showing that oil shipments through the Strait of Hormuz have recovered to roughly two-thirds of prewar levels, driven by a surge in Saudi exports.
On the diplomatic side, President Trump told reporters on the White House lawn over the weekend that he had rejected an Iranian proposal for a seven-day ceasefire and was open to resuming attacks on the Islamic Republic after the midterms.
Reporter: Will you strike Iran after the midterms?
— Clash Report (@clashreport) September 26, 2026
Trump: I'm rejecting their deal. They want to make a deal where they open the Strait immediately because they're losing so badly.
They want to make a deal, and I think that's fine. I like making a deal, too, but that deal would… pic.twitter.com/87rKbDySLN
The key question is: What happens to Iran's oil export hub, Kharg Island, after the midterms?