Saudi Arabia shuts key oil pipeline as Houthis seize strategic Red Sea island

Saudi Arabia has temporarily halted its significant East-West oil pipeline following drone attacks, as tensions escalate in the Iran conflict, potentially disrupting a critical energy corridor. The pipeline, stretching 1,200 kilometers across the Arabian Peninsula, supplies millions of barrels of crude daily, accounting for 4%-5% of global oil supply.

It transports oil from Saudi Arabia's eastern oilfields to the Red Sea coast at Yanbu, providing an alternative to the Strait of Hormuz, where tanker traffic has been severely impacted due to the conflict. Recent assessments indicate that at least one pumping station along the pipeline sustained damage, with thick smoke visible in satellite imagery.

The Saudi government is considering its response, having refrained from retaliation thus far, in alignment with Iraq's request for time to address the issue. Meanwhile, Iran-backed Houthis have seized Perim Island in the Bab el-Mandeb Strait, further tightening their hold on the southern entrance to the Red Sea. This development could force oil tankers to navigate longer routes, potentially escalating shipping costs and exacerbating already elevated global energy prices that have surpassed $100 per barrel.