Introduction 2 - Source: Iran struck a Saudi pipeline hours after the ceasefire was announced

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By Youssef Saba and Maha Al-Dahan

- Iran attacked Saudi Arabia's East-West oil pipeline, an alternative route for exporting crude from the kingdom since the start of the war, just hours after a ceasefire agreement was reached in the Iran-Iran war, an industry source told Reuters on Wednesday.

The source added that the pipeline, which is currently the kingdom’s only oil export outlet, was targeted in an Iranian attack at a time when other facilities in the kingdom were also targeted.

The pipeline carries about seven million barrels per day from the kingdom’s oil production hub in the east to the port of Yanbu on the Red Sea after Iran effectively closed the Strait of Hormuz, halting the production and shipping of huge quantities of oil and gas and causing global energy market prices to spike.

The source said that flows through the pipeline are expected to be affected, adding that work is underway to assess the damage. This could exacerbate what experts have described as the world's worst energy crisis.

Iran’s Revolutionary Guard said in a statement on Wednesday that it had struck several targets across the region with missiles and drones, including what it described as oil facilities belonging to American companies in Yanbu.

The exact timing of this attack, the extent of the damage to the pipeline, and its impact on operations are not yet known.

Neither the Saudi government communications office nor Aramco, the operator of the pipeline, responded to requests for comment via email.

The United States and Iran agreed on Tuesday to a two-week truce brokered by Pakistan, suspending a nearly six-week war that killed thousands, spread across the Middle East, and caused unprecedented disruption to energy supplies to global markets.

But attacks on Gulf states did not stop despite the agreement.

The Kuwaiti military said an intense wave of Iranian attacks targeted the country since 8 a.m. local time (0500 GMT), adding that drone attacks caused extensive damage to oil facilities, power plants and water desalination plants.

The UAE also said it was dealing with Iranian attacks involving missiles and drones, and Bahrain also reported that an Iranian attack damaged homes in the Sitra area.

Aramco is using 2 million barrels per day of the East-West pipeline's domestic transport capacity , leaving approximately 5 million barrels per day for export. Shipping data indicates that average loadings at Yanbu were 4.6 million barrels per day in the week beginning March 23.

The pipeline provided the kingdom with an alternative to the Strait of Hormuz closure, mitigating the war's impact on its oil exports. A Reuters analysis showed that Saudi Arabia's oil revenues in March of this year were higher than in the same month of the previous year.