Saudi Arabia’s Energy Ministry announced the temporary closure of the East-West oil pipeline as a precaution following a drone attack on Thursday in the Riyadh and Medina regions, disrupting an oil corridor that carries between 4,000,000 and 5,000,000 barrels per day.
An alternative route to the Strait of Hormuz
The pipeline stretches 1,200 kilometers and allows Saudi crude to bypass the Strait of Hormuz. It carried between 4,000,000 and 5,000,000 barrels per day in recent months, equivalent to around 4% to 5% of global oil supplies, according to vessel-tracking company data and analyst estimates.
Saudi Arabia and Iraq said the drone was launched from Iraqi territory, where Iran-backed armed groups are active. Iraq dismissed a military commander responsible for operations in Maysan province and began an investigation to identify those behind the attack.
Oil prices surpass $100.00
The pipeline shutdown added to pressure on global energy markets after a sharp slowdown in tanker traffic through the Strait of Hormuz amid the US-Iranian war. Oil prices again surpassed $100.00 a barrel as disruptions affecting supply routes on both sides of the Arabian Peninsula intensified.
Saudi oil supplies had fallen to their lowest level in more than three decades, according to the International Energy Agency, in a decline partly attributed to attacks targeting vessels transiting the Bab el-Mandeb Strait.
Developments at Bab el-Mandeb
Four Yemeni government sources said Houthi forces took control on Friday of the strategic island of Perim at the entrance to the Bab el-Mandeb Strait, giving the group a more commanding position near one of the world’s most important maritime chokepoints.
Yemeni government forces announced their intention to seek the recovery of territory seized by the Houthis during their advance. Iran publicly denied directing the group, describing the Houthis as an ally rather than a proxy.
Saudi Crown Prince Mohammed bin Salman called US President Donald Trump at least twice on Thursday, seeking military support in confronting the Houthis, according to people familiar with the matter. The sources said Washington had shown no willingness to engage in direct military action at present, but had offered intelligence and targeting support.
