- Houthis tighten grip on Red Sea shipping
Saudi Arabia has shut down its East-West pipeline, after the vital oil conduit came under aerial attack in the widening Middle East war, threatening to send energy prices even higher.
The world’s largest crude oil exporter said it temporarily closed the pipeline as a precaution after a drone attack that both Baghdad and Riyadh said had originated in Iraq, where Iranian-backed militias operate. Iraq dismissed a military commander yesterday in response to the attack.
The 1,200km pipeline running across the Arabian Peninsula has served as the main route out for global supplies of Middle East oil for the past six months while the Strait of Hormuz has been largely shut by war. It has been moving 4-5mn barrels per day, amounting to 4-5% of global supply, sparing Saudi Arabia the brunt of the disruption that has crippled other Gulf oil and gas exporters.
There was no immediate claim of responsibility for the strikes. Satellite images showed black smoke rising from an area of the pipeline south of Medina. The attack resulted in some injuries and damage that was being assessed, the Saudi Foreign Ministry said without detailing the impact on exports.
US President Donald Trump, visiting Ireland to attend a golf tournament at one of his resorts, said Iran was probably to blame.
Oil prices shot up over the past week and the retail price of diesel in the United States surged past a record $6 a gallon, as the United States and Iran both fired on tankers and the Iran-aligned Houthis in Yemen
advanced along the Red Sea, potentially extending disruption to another major oil route.
Washington now faces a dilemma over whether to help the Saudis fight the Houthis, risking further expansion of the war.