Saudi Arabia shuts key oil pipeline after drone attack launched from Iraq

Saudi Arabia has shut down a vital oil pipeline following a drone attack launched from Iraq, amid escalating conflict in the Middle East. Iraq reported that it had discharged a military commander and initiated an investigation after admitting the drone attack on its neighbor's East-West pipeline had originated in a province bordering Iran.

The 1,200km (745 miles) pipeline has assisted Saudi Arabia, the world's largest crude oil exporter, in circumventing the Strait of Hormuz. The incident follows a significant advance by Iranian-backed Houthi rebels in Yemen, increasing pressure on global oil shipping routes as the US-Iran war enters its seventh month. On September 11, 2026, Saudi-backed government forces announced they had struck Houthi fighters in the coastal city of Mokha, following the Houthis' takeover of the entire Red Sea coast.

Riyadh announced the pipeline closure as a precaution, citing scorched ground and smoke near the site in satellite images. The foreign ministry confirmed injuries and damage, which are still being assessed. The pipeline transports 4% to 5% of global oil supply, according to Reuters, citing ship tracking companies and analysts. Saudi Arabia has opted not to retaliate at this time, following Iraq's prime minister's call for restraint.

The kingdom pledged to support Iraq's efforts to prevent attacks launched from its territory against neighboring states. Iraq's prime minister's office stated that the operations commander in Maysan governorate, a province bordering Iran, had been removed from his post following confirmation that the drone attack originated from that region.

The Gulf Co-operation Council, comprising representatives from Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait, condemned the attack as a dangerous escalation and violation of international law. The Houthis have advanced in Yemen, seizing control of much of the country's coastline, including the Bab al-Mandab Strait, the gateway to the Red Sea and the Suez Canal.

Meanwhile, the Yemeni Armed Forces have retaliated against Houthi positions in Mokha, Taiz governorate, and Ibb governorate. These developments have raised crude oil prices above $100 a barrel for the first time since July, intensifying inflation concerns and increasing government borrowing costs.