Houthis Capture Island, Sparking Fears of Regional Oil Price Surge

Saudi Arabia shut down its major East-West pipeline as a precautionary measure after it was attacked by drones. The attack, which occurred the day before, was blamed on several drones that came from Iraq.

The Saudi Ministry of Energy called the shutdown 'a precautionary measure' to prevent further disruptions. The East-West pipeline, built in the 1980s, has played a crucial role in Saudi Arabia's ability to export oil following the disruption of the Strait of Hormuz during the Iran war.

The Houthis captured a strategic island at the southern entrance to the Red Sea, one of the world's key shipping lanes. The advance could boost Iran's strategy of driving up world oil and gas prices to pressure the United States.