Saudi Pipeline Shutdown Raises Oil Prices Amid Regional Tensions
Saudi Arabia has temporarily shut down its East-West oil pipeline due to a drone attack linked to Iranian-backed militias in Iraq. The pipeline, which carries approximately 4-5 million barrels of oil per day, accounts for around 4-5% of the global oil supply.
The Saudi Energy Ministry stated that the closure is a precautionary measure, and the exact impact on oil exports is still being evaluated. President Trump suggested that Iran was likely responsible for the attack and predicted that oil prices would drop after the upcoming U.S. midterm elections.
Meanwhile, reports surfaced that the Houthis, aligned with Iran, seized the strategic Perim Island in the Red Sea, further escalating tensions in the region. Crown Prince Mohammed bin Salman of Saudi Arabia reached out to Trump for military assistance against the Houthis but was offered intelligence support instead.
The Iranian foreign ministry announced plans for discussions with Gulf states in Oman regarding the Strait of Hormuz, while Iraq's government dismissed a military commander connected to the attack and closed the Shalamcheh border crossing with Iran as a precaution.