Saudis close oil pipeline as Houthis strengthen hold on Red Sea shipping

Saudi Arabia has shut down its East-West pipeline after the key oil artery was hit in an air raid in the growing Middle East war.

The world’s top supplier of crude oil temporarily shut the pipeline after a drone strike that Baghdad and Riyadh alleged was carried out by Iraq, home to Iranian-backed militias. Iraq on Saturday sacked a military commander after the incident.

The 1,200-kilometre (745-mile) pipeline across the Arabian Peninsula had helped Saudi Arabia avoid a shipping bottleneck in the Strait of Hormuz, where tanker traffic has reduced to a trickle owing to the US-Iran war.

As a precaution, the Saudi energy ministry announced it had halted the pipeline. The line has been transporting 4 million to 5 million barrels per day in ​recent months, or 4% to 5% of world supplies, ship tracking companies and analysts said.

The strike comes as Iran-aligned Houthi rebels in Yemen have reinforced their grip in the Red Sea, which, along with the Strait of Hormuz disruptions, has imposed an energy squeeze on both sides of the Arabian Peninsula, sending global oil prices back above $100 per ⁠barrel.

The 1,200-kilometre (745-mile) pipeline across the Arabian Peninsula has allowed Saudi Arabia to circumvent a shipping bottleneck in the Strait of Hormuz, where tanker traffic has dwindled to a trickle because of the war between the U.S. and Iran.

The Saudi oil ministry stated the pipeline was closed as a precaution. Over the last few months, the line has been carrying four to five million barrels a day, or 4 to 5 percent of the world’s supply, ship tracking companies and analysts said.

The raid comes as Iran-aligned Houthi rebels in Yemen have tightened their control in the Red Sea, which together with the Strait of Hormuz disruptions has imposed an energy strain on both sides of the Arabian Peninsula and sent global oil prices back above $100 per ⁠barrel.