Drone Attacks Force Saudi Arabia Shut Oil Pipeline, Seek US Help as Houthis Seize Red Sea Island

Saudi Arabia shut its East-West oil pipeline after a drone attack, while Iran-aligned Houthi forces seized a strategic island at the entrance to the Red Sea, escalating threats to energy supplies as the war between the United States and Iran disrupts shipping across the region.

The 1,200-kilometre pipeline, which carries Saudi crude across the Arabian Peninsula to the Red Sea, was attacked on Thursday in the Riyadh and Medina regions. The Saudi Energy Ministry said it had suspended operations as a precaution.

The shutdown threatens a major alternative route for Saudi oil exports as tanker traffic through the Strait of Hormuz has slowed to a trickle. The pipeline had been moving between 4 million and 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 cited by Reuters.

Global oil prices moved back above $100 a barrel on Friday as the pipeline attack coincided with Houthi advances along Yemen’s Red Sea coast.

Four Yemeni government sources told Reuters that the Houthis seized Perim island on Friday at the mouth of the Red Sea, in the Bab el-Mandeb Strait. The reported capture of the island, alongside the pipeline attack, marks a potentially dangerous escalation as diplomatic efforts to end the war have stalled.

Saudi Pipeline Attack Triggers Iraq Response

The Saudi Foreign Ministry said the pipeline attack caused injuries and damage that was still being assessed. Satellite images showed black smoke rising from an area south of Medina.

It was not immediately clear who carried out the strike. Baghdad and Riyadh said the drone attack originated in Iraq, where Iranian-backed militias operate.

Iraq dismissed a military commander on Saturday after confirming that the attack originated from its territory. The commander had led operations in Maysan province, which borders Iran in southeastern Iraq and is regarded as an area where Iran-backed Shiite militias maintain influence.

Saudi Arabia has so far refrained from retaliation following a request from the Iraqi prime minister.

The Saudi Foreign Ministry said the kingdom reserved the right to “take all measures necessary” to protect its interests.

Iraq’s government condemned the attacks, while security forces launched a broad operation to find those responsible. Baghdad also ordered the closure of the Shalamcheh border crossing between Iraq and Iran as a precaution, according to two security sources.

The crossing is one of the main routes for imports of vegetables and other food supplies from Iran.

The pipeline disruption follows a warning from the International Energy Agency that Saudi crude supply had fallen to its lowest level in more than three decades. The agency attributed part of the decline to attacks on ships transiting Bab el-Mandeb by Houthi-linked groups.

Houthis Tighten Grip as Saudi Arabia Seeks US Help

The Houthi advance along Yemen’s Red Sea coast has raised the stakes for shipping and oil markets.

Control of Bab el-Mandeb would give Iran, the Houthis’ backer, a critical advantage in its war with the United States. Yemeni government forces have indicated they would attempt to retake areas captured by the Houthis during their rapid offensive this week.

Reuters reported on Thursday that the Houthi advance had been supported by direct guidance from Iran’s Revolutionary Guards.

Two Iranian sources said Iran had instructed the Houthis to escalate attacks on Saudi Arabia and promised more funding, weapons and senior officers to help them do so.

Iran describes the Houthis as an ally but publicly denies directing their military operations, saying they are “not a proxy”.

Houthi military spokesperson Yahya Saree said maritime navigation remained safe for all shipping except Saudi vessels subject to a previously announced ban.

The escalation has prompted Saudi Arabia to seek military assistance from Washington.

Saudi Crown Prince Mohammed bin Salman called US President Donald Trump at least twice on Thursday to request US military help in fighting the Houthis, according to two sources familiar with the matter.

Washington told Riyadh it was not willing to take direct military action for now but would assist with intelligence sharing and targeting, the sources said.

The White House did not address a Reuters question about phone calls between the two leaders. A senior US administration official said Washington remained in continuous dialogue with Saudi Arabia and the Yemeni government.

The latest developments threaten to compound two major disruptions to oil transportation: the slowdown in the Strait of Hormuz and the growing danger around the Red Sea.

The immediate question for energy markets is whether Saudi Arabia can restore the pipeline’s operations without further attacks, while maintaining crude exports through alternative routes.

With oil prices already above $100 a barrel, further damage to Saudi infrastructure or shipping routes could put additional pressure on global fuel markets and deepen the economic cost of the war.