Iraq's government is investigating a drone attack on a key Saudi oil pipeline that originated from its territory, an incident that has led Saudi Arabia to shut down the East-West pipeline. U.S. President Donald Trump stated that Iran was "probably" responsible for the attack, which has heightened concerns about global oil prices.
Saudi Arabia confirmed that several drones came from Iraq but stated it would not retaliate immediately, opting to allow the Iraqi government an opportunity to address the situation. The kingdom had more than doubled its oil exports from the Red Sea port at the East-West pipeline's end by early June, according to the International Energy Agency. The pipeline's closure prevents Saudi Arabia from sending oil via the Suez Canal to the north, a route that had become more critical due to threats against the Strait of Hormuz and the Bab el-Mandeb Strait.
An umbrella group of Iran-backed militias in Iraq denied involvement in the pipeline attack, though they praised the Houthi rebels in Yemen for their actions against Saudi forces. Regional officials have previously informed The Associated Press that the Houthis and Iraqi militias had coordinated attacks on Saudi oil facilities. These coordinated actions reportedly led Saudi Arabia and the United States to conduct retaliatory bombings against Iran-backed militias in Iraq in July.
In response to the incident, Iraqi Prime Minister Ali al-Zaidi ordered an investigation into the operations command of Maysan province, which borders Iran, and dismissed the province's commander. The provincial police chief was also dismissed. Iraq had previously set a September 30 deadline for non-state groups to disarm, a directive that several powerful militias, including those backed by Iran, have indicated they will not follow. In a move possibly linked to the investigation, Iraq has closed two key border crossings with Iran: Shalamcheh and Chazabeh.
Several regional countries, including Kuwait, the United Arab Emirates, Oman, Egypt, Lebanon, and Turkey, have condemned the pipeline attack. The Houthis, meanwhile, claim they are only targeting Saudi shipping after advancing down Yemen's Red Sea coast toward the Bab el-Mandeb Strait. However, markets remain apprehensive, with analysts noting that the mere threat of disruption can increase insurance costs for shipping companies operating in the area.
Iran has announced plans for a regional meeting on Monday involving foreign ministers from Iran and other Gulf countries to discuss shipping management. Iranian President Masoud Pezeshkian stated that regional countries meet Monday on the strait and that Iran has expressed interest in imposing transit fees. He added that traffic into the Persian Gulf would pass entirely through Iranian waters, while outbound routes would partially transit Iranian and Omani waters, provided the U.S. terminates its blockade. The U.S. military reported that its forces have redirected 100 commercial vessels in the past 60 days. Bahrain has stated it will not attend any group meeting that includes Iran before diplomatic relations are restored between the two nations.