Saudi Arabia has officially announced the full restoration of the strategic East-West oil pipeline. This allows the transportation of raw materials to bypass the Strait of Hormuz, which is considered a vulnerable area due to regional tensions. This is reported by Bloomberg.
Today, the volume of oil supplies through this route has reached about seven million barrels per day. The full return of the highway to operation is a step towards stabilizing global energy chains against the backdrop of geopolitical risks in the Middle East, in particular due to the lack of agreements in the negotiations between the United States and Iran on the nuclear program.
Previously, the pipeline's capacity was limited due to a series of attacks that led to a reduction in transit by about 700,000 barrels per day. In addition to infrastructure damage, the incidents affected production: production at the Manifa field fell by 300,000 barrels, similar losses were recorded at the Khurais field. Currently, all technical challenges have been overcome, and capacity has been restored in full.
As Ukrainian News Agency earlier reported, Trump announced an operation to "clear" Hormuz after the free passage of US Navy ships through the strait.
Oil reacted to the truce between Iran and the US with a significant decline, Brent fell below USD 100.
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