Saudi Aramco halts crude shipments to India after pipeline attack, raising oil and freight costs

Saudi Aramco informed Indian refiners that crude shipments will be suspended until further notice after a drone-claimed attack crippled the kingdom’s East-West pipeline, its main alternative to the Strait of Hormuz. The shutdown has pushed Brent futures to roughly $108 per barrel and driven tanker freight toward historic highs. Although traders are still moving limited spot cargoes through the strait, these volumes are far below the term contracts that represent about 9% of India’s imports.

Refiners say they can obtain oil from other suppliers, but the shift is likely to raise both purchase prices and shipping costs, especially as discounts on Russian crude have vanished. The episode heightens worries that an escalation of the Saudi-Houthi clash could further jeopardize energy infrastructure. Meanwhile, the United States passed a bill authorising President Donald Trump to impose up to 100% tariffs on countries buying Russian energy, prompting India’s Ministry of External Affairs to pledge steps to protect its energy security.