Saudi Arabia Shuts Oil Pipeline After Drone Attack

Following a drone attack, Saudi Arabia preemptively shut down the East-West oil pipeline, which in recent months had been transporting approximately 4 million to 5 million barrels of oil per day, roughly 4%–5% of global supply.

Riyadh and Baghdad claim that the attack originated in Iraq, where pro-Iranian militias are active. No one has yet claimed responsibility.

The pipeline was extremely important because it allowed ships to bypass the Strait of Hormuz, where shipping traffic has dropped significantly as a result of the US-Iran conflict. The attack therefore heightens fears of further increases in energy prices.

Tensions in the region are also rising following the Houthis' advances in the Red Sea. US President Donald Trump said Iran is likely behind the attack, but Tehran has not publicly admitted responsibility.

Saudi Arabia has not yet responded with a retaliatory strike but has reserved the right to take action to protect its interests.

(Reuters, mja)