Saudi Aramco Halts Crude Supplies to India Amid Pipeline Attack

India's reliance on Saudi Arabian crude oil has been disrupted after a key pipeline in the Middle East country was shut down following drone attacks. The move comes as global oil prices surge, with Brent futures trading at around $108 a barrel earlier this week.

Saudi Aramco, the state-owned oil giant, has informed Indian refiners that it will suspend crude supplies to them until further notice due to the pipeline attack. Although refiners are not expected to face significant difficulties in sourcing alternative crude, concerns over higher oil prices and freight costs remain.

Read More: Siam Reports 36.5% Rise in Passenger-Vehicle Dispatches During Festive Season

The pipeline, which had become Saudi ArabiaIt was main alternative route for transporting crude after the maritime chokepoint of the Strait of Hormuz was disrupted, was closed late last week following the alleged drone strike. The closure is likely to have a significant impact on India's energy security.

Aramco has been a major supplier of crude oil to India since the start of the war in Yemen. Accounting for around 9% of the country's total imports. The Saudi oil giant has now paused supplies through both the Red Sea and the Strait of Hormuz, according to sources.

Indian refiners are currently not receiving the contracted volumes of crude oil from Saudi Arabia. While they are confident in their ability to source alternative crude, doing so is likely to be more expensive. According to people familiar with the matter.

The US government has signed a new law that allows President Donald Trump to impose up to 100% tariffs on countries buying energy from Russia. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 is aimed at pressuring Moscow over its energy exports.

Also Read: Karnataka HC Orders Rs 3.25 Lakh Refund to Woman After Wrong Account Transfer

Among the top five nations reliant on Russian energy imports are China, India, Slovakia, Hungary, and Azerbaijan. The proposed law would further restrict Iran's access to international markets, bolstering existing sanctions.

In response, India has pledged to implement measures to shield its economy from potential disruptions, with the Ministry of External Affairs affirming its commitment to securing energy supplies for 1.4 billion citizens.