Saudi Arabia Shuts Down Critical Pipeline, Global Oil Prices Rise
Following a drone attack launched from Iraq, Saudi Arabia temporarily deactivated its main oil pipeline. Amid clashes in Yemen and a growing energy crisis, oil prices rose above $100 per barrel.
The critical East-West oil pipeline in Saudi Arabia, targeted by drones launched from Iraq, has been shut down, while the Houthis in Yemen have captured strategic locations and global oil prices have surged above $100 per barrel.
Drone Attack on the Pipeline
Saudi Arabia announced that it has shut down the critical 745-mile East-West oil pipeline targeted by drones launched from Iraq.
The Saudi Ministry of Energy stated in an announcement on Friday that injuries occurred as a result of the attack and that teams are working to ensure the safety of the pipeline.
Developments Between Iraq and Saudi Arabia
Upon the request of the Iraqi prime minister, Saudi Arabia announced that it will not retaliate for now.
Following investigations confirming that the attacks originated from Iraqi territory, an Iraqi military commander was relieved of his duties early Saturday, and Iraq closed two border crossings with Iran.
Clashes in Yemen and Houthi Advance
Houthi rebel forces in Yemen captured Perim Island, located in the middle of the Bab el-Mandeb Strait, and the historic port city of Mocha.
Following these strategic moves, it was reported that forces continue their advance toward the Dhubab region.
Global Markets and Humanitarian Impacts
With these developments deepening the supply crisis in the Middle East, oil prices finished the week above $100 a barrel for the first time since mid-May.
The International Organization for Migration of the United Nations warned that at least 46,000 people have been displaced in Yemen since the escalation of clashes.