Saudi Pipeline Attack Sparks Regional Instability Amid Escalating Tensions
The Middle East is bracing for further instability as tensions between Iran and its rivals continue to escalate. Saudi Arabia has shut down a major oil pipeline after it was attacked by drones allegedly from Iraq, but the kingdom has vowed not to retaliate in order to give the Iraqi government 'an opportunity to take the necessary measures.'
The attack on the East-West pipeline is particularly significant as it 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. According to the International Energy Agency, Saudi Arabia had more than doubled oil exports from the Red Sea port at the pipeline's end to over 5 million barrels per day by early June.
The Iraqi government is under pressure to prevent local militias from aiding other Iran proxy groups across the region. The country has set a September 30 deadline for non-state groups to disarm, but several of the most powerful militias have said they will not comply.
The Houthis in Yemen have also made significant gains, seizing an island in the Bab el-Mandeb Strait, a key shipping lane through which around 12% of global trade passes. The strait's virtual control by the Houthis risks sending global oil prices 'spiraling,' already inflated by the six-month Iran-U.S. war.