Saudi Arabia Oil Exports Resume Via Red Sea: What It Means For India Amid Strait Of Hormuz Crisis

Saudi Arabia has restarted operations on its East-West Pipeline, restoring crude flows towards the Red Sea after a shutdown earlier this month, reports Bloomberg. However, the restart is still at a low rate, and crude tanker loadings from Yanbu had not yet resumed.

The development is significant for India because the pipeline provides Saudi Arabia with an alternative route to move crude to the Red Sea without relying on the Strait of Hormuz. But the benefit for Indian refiners will depend on how quickly Yanbu exports return to normal.

Saudi oil pipeline restarts after attack

The East-West Pipeline, also known as Petroline, was restarted around September 22 after it was shut following drone attacks earlier this month. The pipeline was initially operating at a low pumping rate. Saudi Aramco

was reportedly seeking to restore flows to around 4 million barrels per day (bpd), compared with the pipeline’s nominal capacity of about 7 million bpd. Reuters reported that full restoration could take six to eight weeks because of damage to pumping stations.

The restart is helping restore crude supplies to Aramco’s refineries on the Red Sea coast. It also creates the possibility of reopening the export route through Yanbu, which would allow Saudi crude to bypass the Strait of Hormuz.

However, the export restart has been slower than initially expected. On September 22, sources said a Yanbu cargo could load later that day. But by September 24, Reuters reported that crude was being pumped towards Yanbu to build stocks, while tanker loading had yet to resume. The report was based on industry sources, satellite imagery and shipping data.

Why the pipeline matters for India

India has significant exposure to disruptions around the Strait of Hormuz. About 40% of the country’s crude imports, or roughly 2.5-2.7 million bpd, normally pass through the strait.

During the 2026 Hormuz closure, Saudi Arabia became an important alternative supplier through Yanbu. Weekly Saudi crude flows to India peaked at around 1.43 million bpd in late April 2026, while Saudi crude routed through Hormuz to India fell to almost zero.

The September attacks on the East-West Pipeline forced Saudi Aramco to halt crude supplies to Indian refiners through both the Red Sea and Hormuz. The source had accounted for nearly 9% of India’s total crude imports since the war began.

What changes for Indian refiners?

The pipeline can carry up to 7 million bpd from Saudi Arabia’s eastern oil fields to Yanbu. Recent flows were around 4 million bpd. This provides a route for crude to reach global markets, including India, without passing through Hormuz.

A return of Yanbu exports could also reduce pressure on Indian refiners to source replacement barrels from Russia and other non-Gulf suppliers, which have become more expensive amid competition with China.

It could also help moderate freight and insurance costs. Red Sea shipments avoid some of the longer routes and higher war-risk premiums that emerged when both Hormuz and the East-West Pipeline were constrained.

Relief, but not a full solution

There are still important limitations. As per reports, crude was being pumped towards Yanbu to rebuild inventories, but tanker loadings had not restarted. Full restoration was estimated to take six to eight weeks.

The Strait of Hormuz also remains important for India’s supplies from other Gulf producers. Imports from Iraq, Kuwait and Qatar, which depend on the strait, remain negligible while the disruption continues.

The pipeline shutdown had already pushed benchmark crude above $100 a barrel, increasing replacement and freight costs for Indian refiners. A gradual return of Yanbu exports could ease some of that pressure, but it does not remove the wider impact of the Hormuz crisis.

For India, the East-West Pipeline restart therefore restores an important non-Hormuz supply route, but the relief remains partial until Yanbu tanker loadings return to normal.