Iran-backed militias in Iraq launched drone attacks on Saudi Arabia's East-West pipeline, leading Riyadh to shut down the facility as a precaution. The Iraqi government confirmed the attacks originated from its territory, resulting in the dismissal of two senior security officials in Maysan province and the closure of a main border crossing with Iran. While the Popular Mobilization Forces denied involvement, U.S. President Donald Trump suggested Iran was likely responsible.
The pipeline is a critical bypass for the Strait of Hormuz, moving five percent of the global oil supply. The disruption has reduced market flow by approximately seven million barrels per day, with Saudi crude exports specifically dropping from 5 mbpd to 3 mbpd. Oxford Economics suggests these disruptions could push Brent crude prices to $110, while other experts indicate prices could exceed $100 due to the depletion of strategic reserves.
This event occurs alongside a broader conflict involving the U.S., Israel, and Iran. Current regional pressures include a blockade of the Strait of Hormuz, damage to Qatari LNG facilities, and Houthi rebels in Yemen exerting pressure on the Bab el-Mandeb Strait. In response, the U.S. is conducting 'Operation Epic Fury,' deploying carrier strike group assets in the Arabian Sea and maintaining a naval blockade of Iranian ports. The USS Shoup is involved in the operation, which has redirected 100 commercial vessels. Iranian President Masoud Pezeshkian has denied that Iran is at war with Saudi Arabia and accused the U.S. of targeting civilian infrastructure.