Saudi Arabia was forced to shut down its crucial East-West oil pipeline on Thursday following multiple drone strikes that caused fires and injuries. The attacks, attributed to Iranian-backed militias operating in Iraq, are seen as a coordinated effort with the Houthis in Yemen to escalate regional conflict and impact global oil supplies.
Simultaneously, the Iran-backed Houthi group seized control of Mayun Island in the Bab el-Mandeb Strait, a vital 20-mile-wide shipping corridor at the southern entrance to the Red Sea. This strategic gain further tightens their grip on a critical route for Saudi oil exports, potentially handing Iran a significant advantage in its broader conflict with the United States.
The pipeline, capable of transporting up to 7 million barrels of crude oil daily to the Red Sea port of Yambu, was closed as a precautionary measure. Satellite imagery depicted large plumes of smoke rising from the pipeline area. A senior Saudi official told The Wall Street Journal that the strikes originated from Iraq, where Iranian-backed militias have been targeting Saudi infrastructure.
Despite the attacks, Saudi Arabia reportedly does not plan to retaliate militarily. However, Crown Prince Mohammed bin Salman is said to have twice urged President Trump to authorize U.S. strikes against the Houthis. The Trump administration has rebuffed these requests, indicating no current plans to launch military operations against the group.
The Houthi forces have vowed an "escalation for escalation" and declared that "maritime navigation is safe for all companies except for Saudi vessels." This rhetoric has added pressure to an already volatile global oil market, with crude prices rising above $100 a barrel this week.
This development underscores Saudi Arabia's increased reliance on Red Sea routes for its oil exports, particularly as passage through the Strait of Hormuz has become more complicated due to U.S.-Iran tensions. The Houthis have been targeting Saudi shipping in the Red Sea since declaring a blockade in July and have also hit oil infrastructure within the kingdom. Shipping traffic in the Bab el-Mandeb Strait has reportedly decreased by 60% since the Houthi attacks began in 2023, with the group citing support for Palestinians during the conflict in Gaza.
In response to the disruptions, Saudi Arabia has rerouted some of its exports northward through the Red Sea toward the Mediterranean, utilizing either the Suez Canal or a pipeline in Egypt.
On Friday, Iran's regime called for an end to Saudi blockades of Houthi-controlled areas and urged a return to negotiations between Saudi Arabia and Iran's proxy.