ISLAMABAD – A drone strike on Saudi Arabia’s critical oil pipeline and Houthi takeover of a key Red Sea island pushed the Middle East’s energy crisis into alarming phase.
The latest developments raised fresh fears over global oil supplies as multiple strategic routes used to move crude and commercial shipping come under growing pressure.
Saudi Arabia temporarily shut down its 1,200-kilometre East-West oil pipeline after a drone attack, with Riyadh and Baghdad saying the strike originated from Iraq, where Iran-aligned armed groups are active. The pipeline has become particularly important as disruptions around the Strait of Hormuz have restricted one of the world’s most crucial oil corridors.
It normally carries around 4 million to 5 million barrels of crude per day, equivalent to roughly 4% to 5% of global oil supply. Saudi authorities said the pipeline sustained damage in the attack and that several people were injured. Officials are assessing the extent of the damage.
Satellite imagery reportedly showed dark smoke rising near the pipeline south of Medina, although no group immediately claimed responsibility. US President Donald Trump said Iran was likely behind the attack.
Another blow hits shipping through Hormuz
The pipeline strike came as maritime security concerns intensified in the Strait of Hormuz. UK Maritime Trade Operations organisation reported that a vessel travelling through the strait had been hit by a projectile.
The incident added to concerns over the safety of commercial shipping at a time when tensions have already disrupted maritime traffic across the Gulf and surrounding waters. The pressure on energy markets is already visible.
Brent crude had climbed above $100 a barrel last week, while diesel prices in the United States moved beyond $6 per gallon, reflecting growing concerns over supply disruptions and the widening regional conflict.
The worsening security situation has also pushed Riyadh to seek greater support from Washington. Saudi Crown Prince Mohammed bin Salman spoke with President Trump on Thursday and requested US military assistance against the Houthis. While Washington reportedly stopped short of committing to direct military intervention, US officials assured Saudi Arabia of intelligence cooperation.
Trump later confirmed that he had spoken with the crown prince. He also said the Houthis had contacted the US administration and asked Washington not to become directly involved in the conflict.
The situation becomes even more serious with reports that the Houthis seized Perim island, a strategically located island in the middle of the Bab al-Mandab Strait. The narrow waterway serves as a vital gateway to the Red Sea and is critical to international shipping and global trade.
Yemeni government sources said the Houthis took control of the island on Friday, while Saudi-backed government forces have indicated that they intend to retake territories captured during the group’s recent rapid advances.
Houthi expansion along Yemen’s Red Sea coast occurred with direct guidance from Iran’s Islamic Revolutionary Guard Corps. Iran, however, rejects the description of the Houthis as a force under its direct military command, calling them an ally and denying that it provides operational instructions.
Houthi military spokesman Yahya Saree said maritime routes would remain safe for vessels other than Saudi ships. The existing restrictions on Saudi vessels, he said, would remain in place.
The reported origin of the Saudi pipeline strike has created an additional headache for Iraq. Baghdad maintains relationships with both Washington and Tehran and has sought to avoid being pulled directly into the widening regional confrontation.
After attack, Iraqi government dismissed military commander and police chief in Maysan province, near the Iranian border. Authorities also closed a major border crossing.
The developments raised questions about whether Iraq can prevent Iran-aligned armed groups operating from its territory from becoming directly involved in the expanding conflict.
Meanwhile, attention remains fixed on the future of the Strait of Hormuz. Iranian news agency Tasnim, citing a source close to the negotiating team, reported that Iran and Oman had reached an understanding over possible maritime routes for vessels entering and leaving the strait. But the reported arrangement does not mean the Strait of Hormuz is about to reopen.
Under proposed framework, vessels entering the Persian Gulf would use a route running entirely through Iranian territorial waters, while part of the exit route would also pass through Iranian waters. Traffic on these routes would reportedly operate under Iranian regulations and supervision. A southern maritime route would be closed under the proposed arrangement, despite continued US pressure for it to reopen.
Iran sets conditions for reopening Hormuz
The stakes remain high because Iran has reportedly presented seven conditions to the United States through intermediaries for the reopening of the Strait of Hormuz. Tehran’s position is that the strait will remain closed until those conditions are met.
Iran-Oman understanding is therefore being presented less as an immediate reopening agreement and more as a framework for how maritime traffic could operate if the strait eventually reopens.
The actual reopening, according to the reported sources, would still depend on negotiations between Washington and Tehran.
Iran is also expected to participate in a meeting of Gulf Arab countries in Oman on Monday, where the Strait of Hormuz situation will be discussed. However, Tehran has lowered expectations of a major breakthrough. A senior Iranian official told Reuters that the meeting was not expected to produce a final agreement.
Iranian parliament’s National Security Committee chairman Ibrahim Azizi said negotiations would have little value unless the United States accepted all of Iran’s conditions. The diplomatic uncertainty is compounded by the collapse of an earlier Iran-US agreement reached in June, which reportedly broke down within weeks.
Since then, no formal negotiations have produced a lasting ceasefire or comprehensive settlement between the two sides.
For global energy markets, the danger is no longer concentrated around a single location. Strait of Hormuz, the Bab al-Mandab corridor and Saudi Arabia’s alternative East-West pipeline route are now at the centre of growing security concerns.
Saudi pipeline was designed to provide an alternative route for moving crude toward the Red Sea, reducing dependence on the Strait of Hormuz. Its temporary shutdown therefore comes at a particularly sensitive moment.
Yemen’s Houthis claim control of Bab el-Mandeb as Iran-US war concerns mount
