Saudis shut down oil pipeline, Houthis tighten grip on Red Sea shipping

DUBAI, Sept 12: Saudi Arabia has shut down its East-West pipeline after the vital oil conduit came under aerial attack in the widening Middle East war, threatening to send energy prices even higher.

The world’s largest crude oil exporter temporarily closed the pipeline after a drone attack that both Baghdad and Riyadh said had originated in Iraq, where Iranian-backed militias operate. Iraq dismissed a military commander on Saturday in response to the attack.

The 1,200-km (745-mile) pipeline running across the Arabian Peninsula had helped Saudi Arabia to bypass a shipping logjam in the Strait of Hormuz, where tanker traffic has slowed to a trickle due to the six-month war between the US and Iran.

The Saudi Energy Ministry said it had shut the pipeline as a precaution. The line has been moving 4 million to 5 million barrels per day in recent months, amounting to 4% to 5% of global supply.

There was no immediate claim of responsibility for the strikes. Satellite images showed black smoke rising from an area of the pipeline south of Medina. The attack resulted in some injuries and damage that was being assessed, the Saudi Foreign Ministry said without detailing the impact on exports.

US President Donald Trump, visiting Ireland to attend a golf tournament at one of his resorts, said Iran was probably to blame for the attack. The war he launched six months ago would probably end shortly after the US midterm elections in November, when oil prices would "come tumbling down", he added.�" REUTERS