Investing.com -- Saudi Arabia has temporarily shut its East-West oil pipeline after a drone attack on the key crude conduit, as Iran-aligned Houthi forces tightened their grip on Red Sea shipping routes, Reuters reported exclusively on Friday.
The 1,200-kilometre pipeline, which allows Saudi crude to bypass the Strait of Hormuz, has transported about 4 million to 5 million barrels per day in recent months, equivalent to roughly 4% to 5% of global oil supply, according to ship-tracking companies and analysts.
Saudi Arabia's energy ministry said the pipeline was closed as a precaution after Thursday's attack in the Riyadh and Medina regions. Riyadh and Baghdad said the drone originated in Iraq, where Iranian-backed militias operate. Iraq dismissed a military commander responsible for operations in Maysan province and launched an operation to identify those behind the strike.
The disruption adds pressure to global energy markets after tanker traffic through the Strait of Hormuz slowed sharply amid the U.S.-Iran war. Oil prices have climbed back above $100 a barrel as supply routes on both sides of the Arabian Peninsula face growing disruption.
Four Yemeni government sources said Houthi forces seized the strategic island of Perim on Friday at the entrance to the Bab el-Mandeb Strait, giving the group a stronger position near one of the world's major maritime chokepoints.