Saudi Arabia shuts East-West oil pipeline following drone attack

Saudi Arabia has temporarily shut down its 1,200-kilometer East-West oil pipeline following an aerial drone attack. The Saudi energy ministry stated the closure was a precautionary measure after the conduit, which runs across the Arabian Peninsula, was targeted. Both Riyadh and Baghdad have identified the origin of the attack as Iraq, where Iranian-backed militias are known to operate. In response to the incident, the Iraqi government dismissed a military commander on Saturday.

The pipeline has served as a critical route for global oil supplies over the past six months, particularly as traffic through the Strait of Hormuz has slowed significantly due to the ongoing conflict between the United States and Iran. By bypassing the Strait of Hormuz, the pipeline has been transporting between 4 million and 5 million barrels of oil per day, accounting for approximately 4% to 5% of the total global supply.

This disruption coincides with increasing pressure on energy transit routes across the region. Iran-aligned Houthi rebels in Yemen have reportedly tightened their control over shipping in the Red Sea. According to reports from Yemeni government officials, the Houthis seized the strategic island of Perim, located at the mouth of the Red Sea in the Bab el-Mandeb Strait, on Friday.

The combination of the pipeline closure and the ongoing disruptions in the Red Sea and the Strait of Hormuz has created an energy squeeze on both sides of the Arabian Peninsula. These developments have contributed to a rise in global oil prices, which have moved back above $100 per barrel. The pipeline closure marks a significant escalation, as the conduit had previously allowed Saudi Arabia to avoid the worst of the shipping disruptions that have impacted other Gulf oil and gas exporters.