Saudi Arabia shuts key oil pipeline after drone attack launched from Iraq

Saudi Arabia shuts key oil pipeline after drone attack launched from Iraq

Saudi Arabia has shut down a vital oil pipeline after drones launched from Iraq struck it, as the conflict in the Middle East expands.

Iraq said it had dismissed a military commander and opened an investigation after acknowledging that the drone attack on its neighbour's East-West pipeline had come from one of its provinces bordering Iran.

The 1,200km (745 mile) pipeline has allowed Saudi Arabia - the world's largest crude oil exporter - to avoid the Strait of Hormuz.

The incident comes amid a major advance by the Iranian-backed Houthi rebels in Yemen, adding further strain to global oil shipping routes as the US-Iran war enters its seventh month.

Riyadh said on Friday that it had closed the pipeline as a precaution, as satellite images showing scorched ground and smoke near the site appeared.

The foreign ministry said the attack caused some injuries and damage, which was still being assessed.

Reuters has reported, citing ship tracking companies and analysts, that the pipeline has been carrying 4% to 5% of global oil supply.

Saudi Arabia has decided not to retaliate at this stage, its foreign ministry said after a call from Iraq's prime minister, but added that it reserves the right to "take all measures necessary" to protect its interests.

In a statement, the Iraqi prime minister's office said the operations commander in the Maysan governorate - a province which borders Iran - had been removed from his post after confirmation that the drone attack had been launched from that area.

This week, a rapid advance in Yemen has also seen Houthi militants seize control of much of the country's coastline, sources say.

The group says it controls the Bab al-Mandab Strait, the gateway to the Red Sea and the Suez Canal, though it says maritime navigation is "safe for all companies except for Saudi vessels".

The developments have squeezed both sides of the Arabian Peninsula, pushing crude oil prices above $100 a barrel for the first time since July.