Saudi Arabia shuts 1,200-kilometre oil pipeline after drone attack

  • Saudi Arabia temporarily closed its East-West oil pipeline after a drone attack.
  • 4 million to 5 million barrels per day moved through the pipeline recently.
  • Houthi forces seized Perim island at Bab el-Mandeb's entrance on Friday.

Saudi Arabia temporarily closed its 1,200-kilometre East-West oil pipeline after a drone attack on Thursday in the Riyadh and Medina regions. The pipeline allows Saudi crude to bypass the Strait of Hormuz and has carried about 4 million to 5 million barrels per day in recent months, equivalent to roughly 4% to 5% of global oil supply. Riyadh and Baghdad said the drone originated in Iraq, prompting Baghdad to dismiss a military commander responsible for operations in Maysan province and launch an operation to identify those behind the strike. The disruption comes as tanker traffic through the Strait of Hormuz has slowed sharply amid the U.S.-Iran war and oil prices have risen above $100 a barrel. Four Yemeni government sources said Houthi forces seized Perim island at the entrance to the Bab el-Mandeb Strait, while Yemeni government forces indicated they would try to retake captured territory. The International Energy Agency said Saudi crude supply was already at its lowest level in more than three decades, partly because of attacks on ships transiting Bab el-Mandeb. Saudi Crown Prince Mohammed bin Salman called U.S. President Donald Trump at least twice on Thursday to seek military assistance against the Houthis. Washington declined direct military action for now but offered intelligence sharing and targeting support. Iran denied directing the Houthis, calling them an ally rather than a proxy.

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Saudi Arabia shuts 1,200-kilometre oil pipeline after drone attack - CoinPost Terminal