Saudi Arabia Shuts Oil Pipeline After Iraq Drone Strike — SkimNews
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- Saudi Arabia shut its 1,200km East-West pipeline — which carries 4-5% of global oil supply — as a precaution after a drone attack launched from Iraq's Maysan province, which borders Iran
- Iraq removed its operations commander in Maysan and opened an investigation; Saudi Arabia chose not to retaliate following a call from Iraq's prime minister
- Houthi rebels seized the strategic coastal city of Mokha on Yemen's Red Sea coast and claimed control of the Bab al-Mandab Strait; the Saudi-backed Yemeni government struck back at Houthi positions on Friday, destroying vehicles and killing fighters
- Crude oil prices surged past $100 a barrel for the first time since July, with Energy Aspects analyst Richard Bronze warning they could return to the $120 peak seen earlier in the Iran war because buffers are 'mostly gone'
- The UN reported at least 76,000 people displaced in Yemen since July, with the number quadrupling in the past week and families fleeing 'with nothing but the clothes on their backs'
- The Gulf Cooperation Council condemned the pipeline attack as a 'dangerous escalation and an unacceptable threat' to Saudi Arabia's territorial integrity and vital installations
Why it matters: With 4-5% of global oil supply sidelined and Houthi forces threatening the Bab al-Mandab Strait, the crisis squeezes both sides of the Arabian Peninsula. Analyst Richard Bronze warned the buffers that managed the oil market so far are 'mostly gone,' setting up potential returns to the $120/barrel peak seen earlier in the Iran war.
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