World

Saudi Arabia shuts oil pipeline after Iraq-origin attack as Houthi advance escalates

Iraq dismisses a military commander as the Houthis seize a strategic island at the entrance to the Red Sea.

Updated 6 hours ago · Published on 12 Sep 2026 9:31AM

Saudi Arabia shuts oil pipeline after Iraq-origin attack as Houthi advance escalates
Saudi Arabia shuts its 1,200-kilometre East-West oil pipeline as a precaution after a drone attack confirmed by Riyadh and Baghdad to have originated in Iraq - September 12, 2026

SAUDI Arabia has shut its vital East-West oil pipeline after a drone attack originating in Iraq, as the widening Middle East war puts further pressure on energy supplies and raises tensions across the region.

Reuters reported on Saturday that the Saudi Energy Ministry said the 1,200-kilometre (745-mile) pipeline was closed as a precaution after it was struck on Thursday in the Riyadh and Medina regions.

The pipeline has allowed Saudi Arabia, the world’s largest crude oil exporter, to bypass shipping disruptions in the Strait of Hormuz, where tanker traffic has fallen sharply amid the war between the United States and Iran.

The line had been carrying an estimated 4 million to 5 million barrels per day in recent months, equivalent to about 4% to 5% of global oil supply, according to ship-tracking companies and analysts.

Baghdad and Riyadh said the drone attack originated in Iraq, prompting Iraq’s government on Saturday to dismiss a military commander who had led operations in Maysan province, which borders Iran and has long been an area of influence for Iran-backed Shi’ite militias.

Saudi Arabia has so far opted against retaliation following a request from Iraqi Prime Minister, according to the Saudi Foreign Ministry, which said the kingdom reserved the right to “take all measures necessary” to protect its interests.

Iraq has condemned the attacks and ordered the closure of the Shalamcheh border crossing with Iran as a precaution, two security sources said.

The pipeline attack came as Iran-aligned Houthi forces in Yemen advanced along the Red Sea coast and seized the strategic island of Perim on Friday, according to four Yemeni government sources.

Perim sits at the entrance to the Red Sea in the Bab el-Mandeb Strait, giving control of the island potential strategic importance for shipping through one of the world’s key maritime chokepoints.

The developments threaten to deepen an energy squeeze already created by disruptions in the Strait of Hormuz and Houthi-linked attacks on shipping in the Red Sea, sending global oil prices back above US$100 a barrel.

The International Energy Agency said on Friday that Saudi crude supply had fallen to its lowest level in more than three decades, partly because of attacks on vessels transiting the Bab el-Mandeb by Houthi-linked groups.

Saudi Arabia has also sought US military assistance to counter the Houthi advance, with Crown Prince Mohammed bin Salman calling US President Donald Trump at least twice on Thursday, two sources familiar with the matter told Reuters.

Washington has so far declined to take direct military action but has offered intelligence-sharing and targeting support, the sources said.

The White House did not address questions about the calls, while a senior US administration official said Washington remained in continuous dialogue with Saudi Arabia and Yemen’s internationally recognised government. - September 12, 2026

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