Saudis shut down oil pipeline as Houthis tighten grip on Red Sea shipping

Saudi Arabia has temporarily shut down its 1,200-kilometre East-West oil pipeline after a drone attack originating in Iraq, according to reports from the Saudi energy ministry and Baghdad. The pipeline, which transports 4 million to 5 million barrels of oil per day, helps bypass shipping disruptions in the Strait of Hormuz. The attacks have caused Saudi crude supplies to drop to the lowest levels in over three decades, leading the International Energy Agency to report a drop in crude production.

In response, Iraq's government has closed a key border crossing to prevent imports of food supplies from Iran. Meanwhile, the Houthis, a Yemeni rebel group aligned with Iran, have seized the strategic island of Perim at the mouth of the Red Sea, raising concerns about further disruptions to Red Sea shipping. The situation has led to increased tensions between Saudi Arabia and Iran, with the U.S. considering military assistance for Saudi Arabia amid the ongoing conflict.