Blaming Attack, Saudi Arabia Shuts Major Oil Pipeline

Saudi Arabia has temporarily shut its East-West pipeline—capable of moving 7 million barrels of crude a day across the kingdom to the Red Sea—after what it says were multiple drone strikes launched from Iraq. The pipeline has been the main workaround for getting oil out of the Gulf, the Wall Street Journal reports. The foreign ministry reported injuries and damage but said it would hold off on retaliatory strikes at Baghdad's request, as Iraq's prime minister opened an investigation and pledged legal action against any culprits. The Saudis said the attack was on the pipeline in the Riyadh and Madinah regions.

Satellite data indicated possible fires along the route near Medina. A US official told CNN that a preliminary analysis showed that pump stations were struck. The hit tightens a growing choke on Saudi exports: The Strait of Hormuz remains constrained by conflict with Iran, while Yemen's Iran-aligned Houthi forces have strengthened control over the Bab al-Mandeb strait, another vital oil passage. Analysts warned that oil prices could climb if damage to the line proves serious or attacks continue. Saudi oil output is already at its lowest in more than 30 years, dragging down GDP, widening the budget deficit, and straining Crown Prince Mohammed bin Salman's Vision 2030 spending plans. An energy consultant said repairs are likely, but so are repeat strikes.