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# Drone strikes on Saudi pipeline push crude to $109.80
- URL: https://www.bushletter.com/drone-strikes-on-saudi-pipeline-push-crude-to-109/
- Published: 2026-09-16T21:00:00.000Z
- Updated: 2026-09-17T02:30:53.000Z
- Description: Houthi forces seized Mayun Island at the Red Sea entrance and the sudden market spike threatens to add 35 cents per litre to Australian petrol prices.
- Author: Editor
- Tags: Energy, Australia, Saudi Arabia

![Fiona Sterling](https://res.cloudinary.com/dz77sb7j1/image/upload/v1774262580/bushletter/authors/fiona-sterling.png)

By **Fiona Sterling** · 2026-09-15

TLDR

Three supply shocks in one weekend sent Brent crude to $109.80 a barrel before it settled at $106.48\. Saudi Arabia shut its main Hormuz bypass pipeline after drone strikes, and Houthi forces seized an island commanding the Red Sea's southern entrance.

KEY TAKEAWAYS

01Brent crude peaked at $109.80 on 14 September before settling at $106.48 a barrel.

02Saudi Arabia's East, West Pipeline, carrying 7 million barrels per day, shut after drone attacks on 10 September.

03Houthi forces seized Mayun Island on 11 September, threatening the Bab el-Mandeb strait's 4 million barrels daily.

04Each $1 rise in oil adds roughly 3.5 cents per litre to Australian retail fuel prices.

05US diesel averaged $5.967 per gallon in the week ending 7 September, before the pipeline shutdown.

## Three blows in 48 hours

Brent crude for November 2026 delivery touched $109.80 a barrel on 14 September before settling at $106.48, the sharpest single-weekend move in the oil price since the early months of the Ukraine war.[\[1\]](https://www.boerse-stuttgart.de/en/products/future/381574417/?ref=bushletter.com) Three market-moving supply threats landed within 48 hours.

On 10 September, drone strikes hit infrastructure along Saudi Arabia's East, West Pipeline and Riyadh shut the line as a precaution.[\[2\]](https://www.spa.gov.sa/en/N2674017?ref=bushletter.com) The pipeline runs 1,200 kilometres from Saudi Arabia's eastern oil fields to the Red Sea port of Yanbu and carries up to 7 million barrels per day, making it the kingdom's principal route around the Strait of Hormuz.[\[3\]](https://www.spa.gov.sa/en/N2581938?ref=bushletter.com) Saudi Aramco said the line proved a critical supply artery, helping mitigate a global energy shock and relieve customers affected by Strait of Hormuz shipping constraints, after reaching its maximum capacity of 7.0 million barrels per day earlier this year.[\[3\]](https://www.spa.gov.sa/en/N2581938?ref=bushletter.com) With the pipeline now shut, officials say repairs could take weeks, leaving no bypass.

## The Red Sea chokepoint narrows

The next day, Houthi forces seized Mayun Island, also known as Perim Island, at the Bab el-Mandeb Strait's mouth.[\[4\]](https://www.latimes.com/world-nation/story/2026-09-11/yemens-iranian-backed-houthis-seize-island-in-key-strait-opening-new-front-in-iran-war?ref=bushletter.com) The strait handles around 4 million barrels of crude and refined products daily, and a closure forces tankers roughly 7,000 nautical miles farther around the Cape of Good Hope, substantially raising freight costs for every barrel eventually reaching Australian shores.

Iran's Revolutionary Guard Corps then said it had destroyed a US unmanned surface vessel in the Strait of Hormuz, that the Strait of Hormuz is blocked and under their intelligent control and intelligence dominance, and that any hostile presence in this strategic strait will be targeted.[\[5\]](https://s1.goirani.com/en/news/2026/09/11/3693850/irgc-navy-destroys-american-usv-in-strait-of-hormuz?ref=bushletter.com) Simultaneous threats to Hormuz and the Bab el-Mandeb gave traders little reason to sell.

## What this costs at the bowser

US on-highway diesel averaged $5.967 per gallon in the week ending 7 September, before the pipeline shutdown reached the wholesale market.[\[6\]](https://www.eia.gov/dnav/pet/PET%5FPRI%5FGND%5FA%5FEPD2D%5FPTE%5FDPGAL%5FW.htm?ref=bushletter.com) Australian pump prices track Brent crude closely: every $1 rise in the oil price adds roughly 3.5 cents per litre at the bowser. The rise from pre-weekend levels to the $109.80 intraday peak exceeded $10 a barrel, suggesting a potential pass-through of around 35 cents per litre if sustained.

Tanker detours around the Cape of Good Hope add a second layer of cost. Higher freight rates lift Australian wholesale fuel prices independently of the crude benchmark, so the pump impact could exceed the Brent move alone.

Patrick De Haan @GasBuddyGuy

HISTORY: diesel has crossed $6/gal nationally for the first time ever, according to live GasBuddy data. every truck, every delivery, every package, every grocery run just got more expensive. the cost of moving everything in america just hit a record.

[2026-09-10 · View on X](https://www.coindesk.cc/diesel-tops-6-a-gallon-for-the-first-time-as-28-states-set-records-112693.html?ref=bushletter.com)

The East, West Pipeline is expected to remain shut for several weeks. Saudi Aramco's next repair-timeline update is the clearest near-term market signal, alongside any Houthi escalation at Mayun from occupation to active interdiction of tanker traffic through the Bab el-Mandeb.

This article contains analysis and commentary on market conditions. It does not constitute financial, investment, or professional advice. Past performance is not indicative of future results. Always consult a qualified adviser before making financial decisions.

SOURCES & CITATIONS

1. [Brent Crude November 2026 Futures, Boerse Stuttgart](https://www.boerse-stuttgart.de/en/products/future/381574417/?ref=bushletter.com)
2. [Saudi Arabia shuts East, West Pipeline after drone attacks, Saudi Press Agency](https://www.spa.gov.sa/en/N2674017?ref=bushletter.com)
3. [East, West Pipeline reaches 7 million barrels per day capacity, Saudi Press Agency](https://www.spa.gov.sa/en/N2581938?ref=bushletter.com)
4. [Houthis seize Mayun Island in Bab el-Mandeb Strait](https://www.latimes.com/world-nation/story/2026-09-11/yemens-iranian-backed-houthis-seize-island-in-key-strait-opening-new-front-in-iran-war?ref=bushletter.com)
5. [IRGC Navy destroys US unmanned vessel in Strait of Hormuz](https://s1.goirani.com/en/news/2026/09/11/3693850/irgc-navy-destroys-american-usv-in-strait-of-hormuz?ref=bushletter.com)
6. [US on-highway diesel prices, US Energy Information Administration](https://www.eia.gov/dnav/pet/PET%5FPRI%5FGND%5FA%5FEPD2D%5FPTE%5FDPGAL%5FW.htm?ref=bushletter.com)

FREQUENTLY ASKED QUESTIONS

Why does the East, West Pipeline matter so much?

The pipeline was built in the 1980s specifically to bypass the Strait of Hormuz. With a capacity of 7 million barrels per day, it is Saudi Arabia's main alternative export route when Gulf shipping is disrupted. Its shutdown removes that buffer entirely.

How does the Bab el-Mandeb closure affect Australia?

Tankers that cannot transit the Bab el-Mandeb must sail around the Cape of Good Hope, adding roughly 7,000 nautical miles. That increases freight costs, which feed into the wholesale price of fuel in Australia on top of any rise in the crude benchmark.

What does the oil price move mean for petrol prices in Australia?

Every $1 rise in Brent crude adds approximately 3.5 cents per litre to retail fuel prices in Australia. The intraday spike to $109.80 from pre-weekend levels represented a move of more than $10 a barrel, pointing to a potential pass-through of around 35 cents per litre if the price holds.

![Fiona Sterling](https://res.cloudinary.com/dz77sb7j1/image/upload/v1774262580/bushletter/authors/fiona-sterling.png)

[Fiona Sterling](https://bushletter.com/author/fiona-sterling/?ref=bushletter.com)

Fiona Sterling writes about superannuation, tax and personal finance. She takes rules that are written to be confusing and explains what they mean for the money in your account.

Important

This article contains general information about commodity price movements and fuel cost pass-through estimates. It is not financial advice and does not constitute a recommendation to buy, sell, or hold any financial product. Fuel prices are subject to multiple variables including crude oil benchmarks, freight costs, local taxes, and retailer margins. Past price correlations do not guarantee future outcomes. Consult a financial adviser for advice tailored to your circumstances.