Saudi Arabia has shut down its East-West oil pipeline following a drone attack launched from Iraq, disrupting the flow of 4-5% of global oil supplies. The 745-mile pipeline, which allows the kingdom to bypass the Strait of Hormuz, was damaged on Friday, with the Saudi Energy Ministry confirming injuries and ongoing safety assessments. The Saudi foreign ministry said it would not retaliate for now, citing a request from Iraq's prime minister, but reserved the right to defend its critical infrastructure. Iraq dismissed a military commander after confirming the drones originated from its territory and closed two border crossings with Iran, though an Iran-backed militia coalition denied involvement. Kuwait and Bahrain condemned the attack, with Kuwait calling it a dangerous escalation. U.S. President Donald Trump, visiting Ireland, claimed without evidence that Iran was "probably" behind the strike and said the Houthis had contacted the U.S. to say they did not want to fight. Meanwhile, Houthi forces in Yemen captured Perim Island and the port city of Mocha, advancing toward Dhubab and threatening shipping through the Bab el Mandeb Strait. The Yemeni Ministry of Defense reported counterattacks on Houthi positions, while the rebels stated maritime navigation remained safe except for Saudi vessels. Oil prices closed above $100 a barrel for the first time since mid-May. Iran's president announced a deal with Oman to secure joint navigation through the Strait of Hormuz, to be signed Monday. Saudi Crown Prince Mohammad bin Salman is urging Trump to take military action against the Houthis, with the two leaders having discussed the crisis at least twice in the past 24 hours. The International Organization for Migration reported 46,000 people displaced in Yemen since fighting intensified last week.
Saudi Arabia is absorbing attacks without immediate retaliation, even as its oil infrastructure and regional allies come under growing threat. This restraint, tied to diplomatic requests from Iraq, may limit escalation for now but leaves key supply routes vulnerable to further disruption.
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