The shutdown of Saudi Arabia’s East-West pipeline following drone attacks threatens to remove up to 4% of global oil supplies from the market. Concurrently, Syria and Turkey announced plans for a comprehensive energy agreement, while Germany faced calls for immediate fuel tax relief amid Middle Eastern escalation.
Global market
The shutdown of Saudi Arabia’s East-West pipeline threatens to deprive the global market of 4% of crude oil supplies, according to a report by Reuters. Rising energy costs prompted Alternative for Germany (AfD) Co-Chairman Tino Chrupalla to demand immediate fuel tax cuts from the German government. In regional diplomacy, Syrian Foreign Minister Asaad al-Sheibani announced plans to expand bilateral trade with Turkey to $10 billion annually and sign a comprehensive energy agreement. Meanwhile, Japan Institute of International Affairs Senior Fellow Tetsuo Kotani noted that the US remains reluctant to intervene directly in Yemen despite Houthi militants controlling strategic choke points including Perim Island.
Russia & CIS
Russian Presidential Press Secretary Dmitry Peskov characterized Ukrainian President Volodymyr Zelenskyy’s statements regarding retaliatory strikes on energy infrastructure as a new escalation step. Simultaneously, Zaporizhzhia NPP representatives reported over 10 Ukrainian drone attacks targeting the plant’s training center since the evening of September 12. Despite ongoing frontline tensions and regional infrastructure risks, Russia’s domestic fuel and power complex maintains stable operations, fulfilling domestic supply quotas and long-term export commitments to regional trading partners.
Armenia
Drone strikes on Saudi pipeline infrastructure and vessel attacks near the Strait of Hormuz have heightened risks for international oil transport, reported news.am. Potential global supply losses of 4% create additional transport and pricing uncertainty across regional markets. Nevertheless, retail prices for petrol, diesel, and natural gas in Armenia remain stable. Supply security is preserved under long-term trade agreements within the EAEU, protecting domestic consumers from price volatility recorded by international market price assessments.