Saudi Arabia Shuts Oil Pipeline After Iraq Drone Attack — SkimNews
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- Saudi Arabia closed its 1,200km East-West oil pipeline, which carries 4-5% of global crude supply and bypasses the Strait of Hormuz, after drones launched from Iraq's Maysan governorate struck it, causing injuries and damage still being assessed.
- Iraq confirmed the drones originated in its territory, removed the operations commander of Maysan province, and opened an investigation; Saudi Arabia chose not to retaliate after a call from Iraq's prime minister.
- Saudi Arabia said it 'reserves its right to take all necessary measures' to protect its sovereignty and would support Iraqi government efforts to prevent attacks launched from Iraqi territory.
- The Gulf Cooperation Council condemned the attack as 'a dangerous escalation and an unacceptable threat' to Saudi Arabia's security, with secretary general Jasem Mohamed Albudaiwi calling it a violation of international law.
- Houthi rebels seized Yemen's Red Sea coast including the strategic city of Mokha and claimed control of the Bab al-Mandab Strait, while Saudi-backed Yemeni forces struck back in Mokha, Taiz, and Ibb governorates.
- Crude oil prices pushed above $100 a barrel for the first time since July, with fears of inflation and higher government borrowing costs emerging as the Houthi advance squeezed both sides of the Arabian Peninsula.
Why it matters: A pipeline moving 4-5% of global oil supply is now offline with Saudi Arabia choosing restraint over retaliation, leaving Iran-backed militia attacks on Gulf energy infrastructure effectively unanswered. Combined with the Houthi seizure of Red Sea coastline and the Bab al-Mandab Strait, oil markets face simultaneous pressure on overland crude routes and maritime shipping, driving Brent above $100.
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