Recent drone strikes from Iranian-backed militias in Iraq damaged Saudi Arabia’s East-West pipeline in mid-September 2026, prompting a temporary shutdown and repairs that have restored flows to roughly 80% of the prior 4–5 million barrels per day capacity. The incident occurred amid an active U.S.-Iran conflict and Houthi territorial gains along Yemen’s Red Sea coast, raising the risk of further disruption to this key bypass route around the Strait of Hormuz. Brent crude has traded above $100 per barrel, reflecting supply concerns, while Aramco has shifted some exports through the Persian Gulf. Traders are pricing in elevated but not certain odds of additional attacks, given ongoing regional hostilities, limited Iraqi border controls, and potential U.S. responses ahead of any near-term diplomatic or military developments.