In response to a drone attack that originated in Iraq, Saudi Arabia has temporarily shut down its crucial East-West pipeline. According to the Saudi Foreign Ministry, the attack caused damage in the Riyadh and Medina regions, resulting in several injuries. Saudi authorities described the pipeline shutdown as a “precautionary measure.”
Given that this pipeline previously transported up to five percent of global oil supplies, the attack is expected to further increase pressure on worldwide oil and gasoline prices. Saudi Arabia attributed the attack to militias supported by Iran operating in Iraq.
This incident adds another major source of instability to energy exports from the Middle East. This follows persistent issues, such as the closure of the Strait of Hormuz due to tensions with Iran. Furthermore, the situation in Yemen has recently worsened, with Iran-backed Houthi rebels controlling large parts of the coast, which is also impacting Saudi oil exports.
