Saudi Arabia announced on Friday that it had shut down its vital East-West crude oil pipeline as a precautionary measure following multiple attacks by drones launched from Iraq.
The Saudi government said Thursday morning that drones targeted pipelines in the Riyadh and Medina areas, causing fires and some damage. Several people were reportedly injured in the attack.
As the United States and Iran battle for control of the Strait of Hormuz, Saudi Arabia has relied on the East-West pipeline to move oil exports out of the Persian Gulf. The pipeline has a capacity of 7 million barrels per day and runs across the kingdom to an export terminal in the Red Sea.
The Saudi Energy Ministry said emergency teams were dispatched to secure the pipeline and assess its safety following Thursday’s attack. “Further developments will be announced in due course,” the ministry said.
The Saudi Foreign Ministry announced that Riyadh has decided to refrain from retaliation for the time being to give the Iraqi government time to take steps to prevent attacks from its territory.
Saudi Aramco Chief Executive Amin Nasser said last month that the East-West pipeline had played a bigger role in easing oil supply disruptions caused by the Iran war than the release of emergency oil reserves.
Oil prices soared above $100 a barrel this week for the first time in months as fighting intensified in the Middle East. The pipeline attack may have influenced the rally, as rumors about the pipeline attack circulated on Thursday. Prices ended the week up more than 8%.
Iranian-allied militant groups have stepped up attacks on Saudi Arabia in recent days. Yemen’s Houthi militants launched an attack on Saudi Arabia earlier this week, attacking energy facilities and other civilian assets and injuring more than 70 people, the Saudi government said.
The Houthis declared a maritime embargo on Saudi Arabia in July, seeking to disrupt Saudi oil exports through the Bab el-Mandeb strait, which connects the southern Red Sea to global markets.
