East-West pipeline could still take six to eight weeks to recover to full capacity: Expert
CNBC International TV
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September 23, 2026 at 10:00 AM UTC
Bearish
95% Confidence
Watch on YouTube
Key Points
- Vessel transits through the Bab el-Mandeb Strait are down to an average of 30 daily, from a normal 70-90, due to Houthi attacks.
- The East-West pipeline restart is expected soon but at only 30-40% capacity, with full recovery estimated at 6-8 weeks or longer due to damage.
- Insurance premiums and crew willingness to transit high-risk regions will take weeks or months to normalize, requiring a solid, sustained peace agreement rather than temporary ceasefires.
AI Summary
Corey Ranslem, CEO of Dryad Global, discusses the impact of ongoing conflicts in the Middle East on shipping routes and oil pipelines. Despite reports of Saudi Arabia restarting its East-West pipeline, vessel traffic through the Bab el-Mandeb Strait remains significantly reduced, and full pipeline capacity recovery will take time. Insurers and crews are hesitant to return to pre-conflict levels without a sustained peace deal.
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Gemini 2.5 Flash | Bearish | 95% |
| Consensus | Bearish | 95% |