Saudi Arabia has temporarily shut its important East West oil pipeline after an aerial attack hit the facility, marking another major development in the growing Middle East conflict.
The 1,200 kilometre pipeline was targeted in an attack that Saudi Arabia and Iraq said originated from Iraq, where Iranian backed militias operate. Iraq has denied involvement in the incident and has taken action in response to the attack.
The pipeline is an important alternative route for Saudi oil exports because it allows crude to move toward the Red Sea without relying on the Strait of Hormuz. In recent months, the pipeline had been carrying between 4 million and 5 million barrels of oil per day.
The Saudi Energy Ministry said the shutdown was taken as a precaution. The attack affected the pipeline in the Riyadh and Medina regions and authorities are working to determine those responsible.
The development comes at a time when shipping through the Strait of Hormuz has already been heavily disrupted by the conflict. The latest pipeline closure has added further pressure to global energy supplies.
At the same time, Houthi forces in Yemen have increased their presence around the Red Sea. Their activities near the Bab el Mandeb Strait have created additional concerns for international shipping and energy transportation.
Saudi Arabia has also asked the United States for military assistance against the Houthis. Washington has so far limited its support to intelligence sharing and assistance related to targeting.
The combination of disruptions around the Strait of Hormuz and the Red Sea has increased pressure on energy markets, with oil prices moving above $100 per barrel.