Trump links Iran to drone attack on Saudi pipeline as oil prices spike toward $110

President Donald Trump pointed the finger at Tehran on September 12, saying Iran was “probably” responsible for the drone attack that struck Saudi Arabia’s critical East-West pipeline two days earlier.

Brent crude briefly touched roughly $110 per barrel in the aftermath of the September 10 strikes.

What happened on the ground

On September 10, drone strikes hit pump stations along Saudi Arabia’s East-West pipeline in the Riyadh and Medina regions. The attacks caused injuries and significant infrastructure damage, prompting Saudi Arabia to immediately shut down the pipeline as a precaution.

The East-West pipeline spans 1,200 kilometers, connecting Saudi oil fields in the east to export terminals on the Red Sea coast. Under normal operations, it moves an estimated 4% to 5% of the world’s oil supply.

Investigations traced the drones’ launch point to Iraq’s Maysan province, near the Iranian border. Iraq responded by dismissing the local military operations commander responsible for the area but stopped short of retaliating further. Riyadh reportedly asked Baghdad to hold off on any escalatory moves, a request Iraq appears to have honored.

The bigger picture: a region on edge

This attack didn’t happen in a vacuum. The Strait of Hormuz, which normally handles roughly a fifth of global petroleum consumption, has been effectively closed due to ongoing hostilities, forcing a massive rerouting of oil shipments.

Saudi Arabia’s East-West pipeline was supposed to be part of the workaround. With tankers unable to safely transit the Strait of Hormuz, the pipeline offered an alternative path to get crude to the Red Sea and onward to European and Asian markets.

Iraq finds itself in an uncomfortable middle position, hosting Iranian-aligned forces on its soil while trying to maintain working relationships with both Riyadh and Washington. Dismissing a military commander signals accountability without provoking Tehran.

What this means for oil markets and beyond

The spike to around $110 per barrel on Brent is significant but not unprecedented in the context of this year’s volatility. If the East-West pipeline remains offline for an extended period, supply constraints could push prices higher and keep them there.

Sustained elevated oil prices have a cascading effect that reaches well beyond trading desks. Higher crude costs feed directly into gasoline prices, shipping costs, and ultimately consumer inflation.

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