Saudi Arabia’s shutdown of key pipeline limits oil flow as Yemen hits back against Houthis

Key Points:

• Saudi Arabia has shut down its critical 745-mile East-West oil pipeline after drone attacks launched from Iraq, disrupting 4-5% of global oil supplies and escalating tensions in the Middle East energy sector.
• Iraq dismissed a military commander following investigations confirming the drone strikes originated from its territory and simultaneously closed two key border crossings with Iran amid rising regional security concerns.
• Houthi rebels in Yemen captured strategic locations including Perim island and the port city of Mocha, threatening the vital Bab el Mandeb Strait, a key maritime route for global oil shipments, which could further strain oil supply routes.
• The United States, Saudi Arabia, and regional allies condemned the attacks, with Saudi Arabia refraining from immediate retaliation at Iraq’s request while reserving the right to protect its sovereignty and critical infrastructure.
• The escalating conflict has pushed oil prices above $100 per barrel, with experts warning that effective Houthi control of the Red Sea coast could significantly increase Iran’s leverage over global energy markets and complicate U.S. foreign policy.