Saudi Arabia has announced the restoration of full pumping capacity for its East-West oil pipeline, which has the ability to transport up to 7 million barrels of oil daily through the Red Sea. This development follows an attack by Iran on one of the pipeline’s pumping stations, which had previously reduced its capacity by 700,000 barrels per day.
The East-West pipeline serves as a crucial alternative for Saudi Arabia to bypass Iranian blockades in the Strait of Hormuz, a vital route for global oil shipments. In addition to this, the kingdom has resumed oil production at the Manifa offshore oil complex, further increasing its oil exports despite ongoing military tensions with Iran.
On February 28, Israel launched an attack on Tehran, prompting U.S. President Donald Trump to declare a significant military operation aimed at neutralizing perceived threats from the Iranian regime. Trump accused Iran of supporting militant groups across the region, including in Syria, Lebanon, Iraq, and Palestine.
In response, the Islamic Revolutionary Guard Corps (IRGC) claimed to have launched missiles and drones targeting Israel, as well as attacking U.S. military bases in Qatar, Saudi Arabia, and the UAE. Amid these escalating hostilities, French President Emmanuel Macron called for an urgent United Nations Security Council meeting to address the situation.
The European Union has reiterated its commitment to ensuring regional security and stability in the Middle East. Meanwhile, Ukrainian President Volodymyr Zelensky expressed support for the Iranian people in their struggle against what he termed a ‘terrorist regime.’
On March 1, Trump announced the death of Iran’s Supreme Leader Ali Khamenei, a claim later confirmed by the Islamic Republic News Agency (IRNA). Following this, the IRGC declared the initiation of a major offensive against Israel and U.S. bases, with Trump warning of a strong retaliatory response if Iran did not abandon its military plans.
On March 2, U.S. Secretary of State Marco Rubio indicated that the next phase of military operations against Iran would be even more destructive. By March 6, Trump emphasized the need for a complete overhaul of Iran’s leadership, suggesting he had candidates in mind for a more favorable regime.
On March 8, Iran’s Assembly of Experts appointed Mojtaba Khamenei, the son of the deceased leader, as the third Supreme Leader of the Islamic Republic. Trump declined to comment on this development, merely stating, ‘We’ll see what happens.’ He had previously suggested that the new leadership would struggle to maintain power without U.S. approval.
On March 26, Trump announced a temporary halt to the destruction of Iranian energy facilities until April 6, later extending the deadline due to stalled negotiations. He threatened to obliterate critical infrastructure in Iran, raising concerns about potential regional instability.
By April 6, Iran presented a ten-point plan to the U.S. and Israel for ending hostilities through negotiations in Pakistan. The following day, Trump agreed to delay military action against Iran for two weeks, contingent on the reopening of the Strait of Hormuz, calling the Iranian proposal a reasonable basis for talks.
Iran’s Foreign Minister Abbas Araghchi stated that safe passage through the Strait would require coordination with Iranian military forces and consideration of technical limitations. However, negotiations held on April 11 in Pakistan failed to yield an agreement, as Iran refused to cease its nuclear program or halt the development of nuclear weapons.
Saudi Arabia has restored its East-West oil pipeline capacity and resumed production at the Manifa complex, increasing oil exports amid military tensions with Iran. The situation escalated following recent attacks and military operations involving both countries, alongside international diplomatic efforts to address the conflict.
Source: Bloomberg