Saudi Arabia shuts pipeline carrying up to 5% of global oil supply after drone attack

Saudi Arabia temporarily shut down its East-West oil pipeline after a drone attack amid an escalating regional conflict, Reuters reported.

Both Saudi Arabia and Iraq said the attack originated from Iraqi territory, where Iran-backed militias operate. However, it was not immediately clear who was responsible for the strike. Saudi authorities said there were injuries and damage, but did not specify whether oil exports had been affected.

The 1,200-kilometer (745-mile) pipeline crosses the Arabian Peninsula and allows Saudi Arabia to move oil to the Red Sea coast without relying on the Strait of Hormuz.

The route has become particularly important during the six-month war between the United States and Iran, which has reduced tanker traffic through Hormuz to a trickle. The pipeline has carried between 4 million and 5 million barrels of oil per day in recent months — equivalent to roughly 4% to 5% of global supply. Saudi Arabia said it shut the pipeline as a precaution.

The attack comes as pressure is also mounting on shipping routes on the other side of the Arabian Peninsula.

Iran-aligned Houthi forces have advanced along Yemen’s Red Sea coast and seized the strategic island of Perim at the entrance to the Bab el-Mandeb strait, another crucial route for global shipping and oil exports. Combined with disruptions in Hormuz, the developments have pushed global oil prices back above $100 per barrel.

The International Energy Agency said Saudi crude supply had already fallen to its lowest level in more than three decades, partly because of attacks on ships passing through Bab el-Mandeb.

Iraq dismissed a military commander after confirming that the pipeline attack originated from its territory and launched an operation to find those responsible.

Saudi Arabia has so far refrained from retaliation at the Iraqi prime minister’s request, while saying it reserves the right to take “all measures necessary” to protect its interests.

Saudi Crown Prince Mohammed bin Salman also asked U.S. President Donald Trump for military assistance against the Houthis, according to Reuters. Washington has so far ruled out direct military action but offered intelligence sharing and targeting assistance.