Saudi Arabia’s shutdown of key pipeline limits oil flow as Yemen hits back against Houthis

Saudi Arabia has closed a critical oil pipeline after it was struck by drones launched from Iraq, the latest squeeze on Middle Eastern supplies after attacks by Iran-backed Houthi rebels this week threatened to deepen the world’s energy crisis.

The 745-mile pipeline had helped Saudi Arabia, the world’s largest crude oil exporter, bypass the blocked Strait of Hormuz, through which some 20% of the world’s oil used to pass before the U.S. and Israel waged war on Iran in late February.

The Saudi Energy Ministry confirmed the shutdown of the East-West pipeline on Friday, adding that drone attacks had resulted in a number of injuries and that its teams were “taking the necessary measures to secure the pipeline and assess its safety.”

Saudi Arabia said it would not retaliate for now following a request from Iraq’s prime minister, while reserving the right to take all necessary measures to protect its sovereignty, security and critical facilities, according to a Saudi foreign ministry statement.

The pipeline has been moving 4-5% of global oil supplies, new agency Reuters reported Friday.

An Iraqi military commander was dismissed early on Saturday after investigations confirmed the latest drone attacks targeting Saudi Arabia originated from Iraq, according…

Original source: https://www.nbcnews.com/business