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

ADEN/DUBAI, Sept 12 (Reuters) – 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 said it temporarily closed the pipeline as a precaution after a drone attack that both Baghdad and Riyadh said had originated in Iraq, 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 has served as the main route out for global supplies of Middle East oil for the past six months while the Strait of Hormuz has been largely shut by war. It has been moving 4 million to 5 million barrels per day, amounting to 4% to 5% of global supply, sparing Saudi Arabia the brunt of the disruption that has crippled other Gulf oil and gas exporters.