Saudi Arabia Halts East-West Pipeline After Drone Strike From Iraq

Saudi Arabia has temporarily shut down its East-West pipeline after the 1,200-kilometre conduit came under aerial attack, the kingdom's energy ministry said, as the Middle East war widened on a second front.

The pipeline, which carries crude across the Arabian Peninsula, was hit on Thursday morning in the Riyadh and Medina regions. Baghdad and Riyadh both said the attack originated in Iraq, where Iranian-backed militias operate. No group has claimed responsibility.

The line had been moving 4 million to 5 million barrels per day in recent months, roughly 4% to 5% of global supply, according to ship-tracking firms and analysts. It had allowed Saudi Arabia to sidestep congestion in the Strait of Hormuz, where tanker traffic has slowed sharply amid the war between the United States and Iran.

Iraq's prime minister's office said on Saturday that it had dismissed a military commander who led operations in Maysan province, a southeastern region bordering Iran long seen as a base of Shi'ite militia influence. Two security sources said Iraq also ordered the closure of the Shalamcheh border crossing with Iran as a precaution, and that a wide operation was under way to find those behind the pipeline strike.

Saudi Arabia has held off on retaliation at the request of Iraq's prime minister, its foreign ministry said, while reserving the right to take "all measures necessary" to protect its interests. Iraq's government condemned the attacks.

The pipeline strike coincided with a rapid Houthi advance along Yemen's Red Sea coast. Four Yemeni government sources said the Iran-aligned rebels seized Perim island on Friday, giving them a foothold at the mouth of the Bab el-Mandeb Strait. Yemeni government forces signalled they would attempt to retake the territory.

Should the Houthis consolidate control of Bab el-Mandeb, their backer Iran could gain a critical advantage in its war with the U.S. The Houthi military spokesperson, Yahya Saree, said maritime navigation remained safe for all shipping except Saudi vessels covered by a previously announced ban.

Saudi Crown Prince Mohammed bin Salman called U.S. President Donald Trump at least twice on Thursday to seek military help against the Houthis, two sources familiar with the matter said. Washington told Riyadh it was not prepared to take direct military action for now but would assist with intelligence sharing and targeting, the sources said. A senior administration official said Washington was in continuous dialogue with Saudi Arabia and Yemen's government.

The International Energy Agency said Saudi crude supply had fallen to its lowest level in more than three decades, partly because of Houthi-linked attacks on ships transiting Bab el-Mandeb. With disruptions on both sides of the peninsula, global oil prices have climbed back above $100 a barrel.