Saudi Arabia Boosts Pipeline Capacity Amid Energy Crisis

The Strait of Hormuz has been blocked for several weeks, disrupting one of the main axes of global oil trade. To maintain its exports, Saudi Arabia has pushed its East-West pipeline to full capacity. This technical response is not enough to compensate for the market disarray. The rapid rise in crude prices reveals a structural fragility in global supply amid growing geopolitical tensions.

The Saudi Pipeline Pushed to Its Limits

Saudi Arabia has activated its East-West pipeline at full capacity, reaching 7 million barrels per day, to bypass the closure of the Strait of Hormuz. Indeed, the CEO of Saudi Aramco, Amin Nasser, stated on March 10 that the pipeline would reach full capacity within a few days.

This 1,200-kilometer infrastructure connects the oil fields of Abqaiq to the port of Yanbu on the Red Sea. Facing a paralyzed maritime corridor, Riyadh relies on this land route to maintain its oil exports and limit the impact on the global market.

The Strait of Hormuz, a strategic passage for energy trade, sees its traffic collapse by 90 to 95 %, while it usually accounts for nearly 20 % of global supply. In this context, the pipeline becomes a direct alternative, redirecting part of the oil flows to the west of the country.

This emergency configuration reveals the central role of this infrastructure in Saudi Arabia’s energy strategy.

• The pipeline capacity has been raised to 7 million barrels per day ;
• Traffic in the Strait of Hormuz has fallen by 90 to 95 % ;
• The area accounts for about 20 % of global supply ;
• Flow distribution : 2 million barrels per day for domestic consumption, and 5 million barrels per day for export via Yanbu.

An Energy Crisis Already Visible on the Markets

The supply disruption is immediately reflected in prices. WTI crude approaches 100 dollars, recording a rise of about 40% in one month, while Brent moves between 105 and 112 dollars and Dubai crude reaches about 126 dollars.

Faced with this tension, authorities have released nearly 400 million barrels from strategic reserves, an unprecedented level. Despite this massive intervention, analysts speak of a scenario where oil prices could climb between 150 and 200 dollars if the situation persists.

The origin of this crisis goes back to strikes by the United States and Israel against Iranian facilities, followed by a closure of the strait by Tehran. This military escalation transforms a strategic passage into a geopolitical leverage, with immediate repercussions on the global economy. The use of alternative infrastructures like the Saudi pipeline shows its limits in the face of such a major shock.

Thus, bitcoin operates in a tense macroeconomic context, where energy shocks and inflation strengthen its role as an alternative asset amid the uncertainties of traditional markets.

In the long term, this situation could accelerate the reconfiguration of energy routes and increase investments in bypass solutions to curb the surge in oil prices. It also feeds a climate of uncertainty in financial markets, where energy acts as a catalyst for inflation and volatility. In this environment, economic balances could be sustainably redefined, with indirect effects on all asset classes, including the crypto market.