Saudi Arabia Shuts Down Critical Oil Pipeline, Energy Crisis Deepens After Drone Strikes

Saudi Arabia confirmed the closure of its 745-mile East-West pipeline on Friday following drone strikes originating from Iraq that caused multiple injuries. The pipeline had served as a critical alternative route moving 4% to 5% of global oil supplies and bypassing the blocked Strait of Hormuz.

Following the attacks, Iraqi Prime Minister's office dismissed an Iraqi military commander after investigations confirmed the drones came from Iraq. Meanwhile, Kuwait and Bahrain condemned the escalation as a serious threat to regional stability, and U.S. President Donald Trump stated that Iran was "probably" behind the strike.

The disruption coincided with Houthi rebel forces capturing Perim Island and the historic port city of Mocha along the Bab el Mandeb Strait. Houthi leadership declared that maritime navigation remains safe for all companies except for Saudi vessels until regional blockades are lifted.

Fawaz Gerges, a professor at the London School of Economics, noted that effective Houthi control over the Red Sea coast provides Iran with significant economic leverage. "Far from being really besieged and bleeding, Iran now could easily increase the pain to the U.S. economy and the world economy," he stated.

In response to the escalating hostilities, the United Nations' International Organization for Migration reported that at least 46,000 people have been displaced in Yemen. Saudi Crown Prince Mohammad bin Salman has urged President Trump to take military action as oil prices closed the week above $100 a barrel for the first time since May.