Saudi Arabia shuts East-West oil pipeline after Iraq drone attack

Saudi Arabia shut its 1,200km (745-mile) East-West oil pipeline as a precaution after a drone attack that Iraq says was launched from its territory, Riyadh and Baghdad said on Friday. Saudi Arabia’s foreign ministry said the attack caused injuries and damage that was still being assessed.

Why did Saudi Arabia close the East-West pipeline?

The pipeline crosses Saudi Arabia, the world’s largest crude oil exporter, and allows the kingdom to bypass the Strait of Hormuz. It has been moving 4% to 5% of global oil supply, Reuters reported, citing ship tracking companies and analysts. Riyadh said it shut the line as a precaution, and satellite images of scorched ground and smoke near the site emerged on Friday.

Drone attacks on infrastructure have also featured in the war in Ukraine, where a Russian drone hit a mall in Pavlohrad, killing five people and wounding 67.

What has Iraq said about the attack?

Iraq’s prime minister’s office said the operations commander in Maysan governorate, a province bordering Iran, had been removed from his post and that an investigation had been launched after the drone attack was confirmed to have originated there.

Saudi Arabia said it had chosen not to retaliate at this stage following a call from Iraq’s prime minister. The foreign ministry said the kingdom would “support the efforts of the Iraqi government” to “prevent attacks” launched from Iraq against neighbouring states, adding that it “reserves its right to take all necessary measures to safeguard its sovereignty and security”.

The Gulf Co-operation Council, made up of Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar and Kuwait, condemned the attack. Secretary general Jasem Mohamed Albudaiwi called it “a dangerous escalation and an unacceptable threat” to Saudi security and “a flagrant violation of the principles of international law”.

What is happening in Yemen?

The pipeline closure came amid a Houthi advance along Yemen’s Red Sea coast. The group seized the port city of Mokha, about 80km (50 miles) north of the Bab al-Mandab Strait, on Thursday, and said it controlled the strait, the gateway to the Red Sea and the Suez Canal. It said maritime navigation was “safe for all companies except for Saudi vessels”.

Has Yemen’s government responded?

Yemen’s Saudi-backed government forces said on Friday they had struck Houthi positions in and around Mokha, destroying vehicles and weapons and killing a number of fighters, spokesman Majid al-Nuzaili said. Local sources reported air strikes on Houthi forces in the Taiz and Ibb governorates. The UN said at least 76,000 people had been displaced in Yemen since July, with the number quadrupling in the past week, and warned of a “rapidly worsening displacement crisis”.

How are oil markets reacting?

Crude oil prices rose above $100 a barrel for the first time since July as the two crises squeezed both sides of the Arabian Peninsula. Richard Bronze of Energy Aspects told the BBC that diverting Saudi oil via the Suez Canal and around Africa was already adding 30 days to sailing times, and that diesel prices had reached record levels. “The buffers that have helped the oil market manage the crisis so far are mostly gone,” he said, adding that crude could return to the $120 per barrel peak reached earlier in the Iran war.

Frequently asked questions

Why did Saudi Arabia shut the East-West pipeline?

Riyadh said it closed the 1,200km (745-mile) pipeline as a precaution after a drone attack that caused injuries and damage still being assessed. The line lets Saudi Arabia bypass the Strait of Hormuz and has been carrying 4% to 5% of global oil supply.

Did Iraq admit the drone was launched from its territory?

Iraq’s prime minister’s office said the operations commander in Maysan governorate, which borders Iran, was removed from his post and an investigation opened after it was confirmed the attack was launched from that region.

Is Saudi Arabia retaliating?

No. Saudi Arabia said it had chosen not to retaliate at this stage following a call from Iraq’s prime minister, while saying it reserves the right to take all necessary measures to safeguard its sovereignty and security.

What are oil prices doing?

Crude oil prices rose above $100 a barrel for the first time since July. Richard Bronze of Energy Aspects said the buffers that helped the market manage the crisis so far are mostly gone and that prices could return to $120 per barrel.

With reporting from BBC News.

Stock image, not from the events described. Global Map — World Maps / Wikimedia Commons (CC0 1.0)