Saudi Arabia shuts key oil pipeline as Houthis seize strategic Red Sea island

Saudi Arabia has shut down its major East-West oil pipeline after it was attacked by drones, as the widening Iran war opened another front around one of the world’s most important energy corridors. The pipeline, which carries millions of barrels of crude across the Arabian Peninsula, was struck on Thursday in the Riyadh and Madinah regions, leaving several people injured and causing damage that is still being assessed.

The Saudi Energy Ministry said Friday that the pipeline had been shut down as “a precautionary measure” after multiple attacks. The Saudi Foreign Ministry said the strikes were carried out by several drones coming from Iraq, where Iranian-backed militias operate, and that the attacks “caused human injuries and damage.”

Saudi Arabia has so far held back from retaliation after Iraq’s prime minister asked Riyadh to give Baghdad time to take action against those responsible. The kingdom said it “reserves the right to take all necessary measures to protect its sovereignty, its security, its facilities,” and its inhabitants.

Built in the 1980s, the roughly 1,200-kilometre East-West pipeline has become increasingly important during the Iran war because it allows Saudi Arabia to bypass the Strait of Hormuz, where tanker traffic has been severely disrupted. The pipeline runs from Saudi Arabia’s oil-producing east to Yanbu on the Red Sea coast, providing an alternative route for crude exports.

The pipeline has been moving between 4 million and 5 million barrels of oil per day in recent months, equivalent to roughly 4% to 5% of global supply, according to ship-tracking companies and analysts. By early June, Saudi Arabia had more than doubled oil exports from Yanbu to more than 5 million barrels per day.

An early assessment by US officials found that pumping stations located alongside the pipeline were hit. Satellite imagery showed fire and thick black smoke rising from at least one pumping station. It remained unclear how long repairs would take or whether sections of the pipeline itself had suffered damage.

The Bab el-Mandeb has become more significant since the war disrupted the Strait of Hormuz. Before the conflict, about 20 million barrels of oil a day passed through Hormuz, representing around a fifth of global supply. With that route disrupted, Saudi Arabia increasingly relied on its East-West pipeline and Red Sea exports.

Saudi crude flows through Bab el-Mandeb had already fallen sharply because of Houthi threats. Further disruption could force oil tankers to take much longer routes, increasing shipping costs and adding pressure to global energy prices, which have already surged above $100 a barrel.