Saudi Aramco told at least two European refining customers on Friday that their monthly crude oil deliveries are cancelled. The decision, reported by Bloomberg News, applies to all European buyers who typically rely on term contracts for steady supply. This abrupt cutoff follows a physical attack on the kingdom’s critical infrastructure.
The damage is significant. Satellite imagery and three industry sources confirmed on September 17 that three pumping stations along the 1,200-kilometer East-West Pipeline were destroyed. One station suffered worse damage than initially assessed. Saudi authorities shut down the pipeline immediately, blaming drones launched by Iranian-backed militias in Iraq. This route is no longer a backup option; it is the primary lifeline for Saudi exports since the Strait of Hormuz became largely impassable during the current conflict.
The pipeline moves 4 million to 5 million barrels of crude daily. That volume represents 4% to 5% of global supply. With the Strait of Hormuz closed, this single artery kept Saudi Arabia’s exports flowing. Now, that flow has stopped. The vacuum is immediate and painful for buyers who planned their refining schedules months in advance.
Poland’s state-owned oil refiner Orlen SA is already reacting. The company has issued more than 10 tenders since Friday to source replacement crude. The International Energy Agency’s June data shows European countries in the OECD imported 577,000 barrels per day from Saudi Arabia. Replacing that volume in a tight global market will be expensive and logistically complex. Other European refiners are likely following Orlen’s lead, scanning the futures market for any available barrels.
The next few weeks will determine if global oil prices spike further. Aramco has not announced when the pipeline will reopen, and repairs to three major pumping stations will take time. Until then, European industries face higher fuel costs and supply uncertainty. The diplomatic fallout is also mounting, with Europe now directly exposed to the consequences of the Iran-Iraq-Saudi pipeline conflict.