Riyadh
\nSaudi Arabia has closed a critical oil pipeline after it was attacked by drones launched from Iraq, as conflict in the Middle East widens.
\nIraq said it had fired a military commander and launched an investigation after admitting the drone attack on its neighbour\u2019s East-West pipeline had originated in one of its provinces bordering Iran. Saudi Arabia has previously accused Iran-backed militia in Iraq of targeting its oil facilities.
\nThe 1,200km (745 mile) pipeline has helped Saudi Arabia – the world\u2019s largest crude oil exporter – bypass the Strait of Hormuz.
\nThe incident comes amid a major advance by the Iranian-backed Houthi rebels in Yemen, putting more pressure on global oil shipping routes as the US-Iran war stretches into its seventh month.
\nOn Friday, Yemen\u2019s Saudi-backed government forces said they had struck Houthi fighters in the strategic coastal city of Mokha, a day after the Houthis seized control of the entire Red Sea coast.
\nRiyadh on Friday said it had shut the pipeline as a precaution, as satellite images of scorched ground and smoke near the site emerged.
\nThe foreign ministry said the attack resulted in some injuries and damage, which was still being assessed.
\nThe pipeline has been moving 4% to 5% of global oil supply, news agency Reuters has reported, citing ship tracking companies and analysts.
\nSaudi Arabia has chosen not to retaliate at this stage, its foreign ministry says, following a call from Iraq\u2019s prime minister.
\nIt said the kingdom would \u201csupport the efforts of the Iraqi government\u201d to \u201cprevent attacks\u201d launched from the country against neighbouring states.
\n\u201cThe Kingdom of Saudi Arabia affirms that it reserves its right to take all necessary measures to safeguard its sovereignty and security, protect its facilities, and ensure the safety of its citizens and residents,\u201d the statement added.
\nThe Iraqi prime minister\u2019s office in its own statement said the operations commander in the Maysan governorate – a province which borders Iran – had been removed from his post following confirmation the drone attack had been launched from that region.
\nSaudi Arabia has previously carried out strikes alongside the US against Iran-backed militias in Iraq after accusing the groups of launching drones from Iraqi territory at oil facilities.
\nThe Gulf Co-operation Council \u2013 made up of representatives from Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar and Kuwait \u2013 also issued a statement condemning the attack.
\n\u201cThis attack represents a dangerous escalation and an unacceptable threat to the security of the Kingdom of Saudi Arabia, its territorial integrity, and its vital installations, as well as a flagrant violation of the principles of international law,\u201d secretary general Jasem Mohamed Albudaiwi.
\nThis week, a lightning advance in Yemen has also seen Houthi militants seize control of much of the country\u2019s coastline, sources say.
\nThe group said it had control of the Bab al-Mandab Strait, the gateway to the Red Sea and the Suez Canal, though it said maritime navigation is \u201csafe for all companies except for Saudi vessels\u201d.
\nThe Yemeni Armed Forces have since struck back. On Friday, spokesman Majid al-Nuzaili said they had targeted Houthi positions in and around the city of Mokha, adding that they had destroyed vehicles and weapons and killed a number of Houthi fighters.
\nThe strategic coastal city on the Red Sea is situated about 80km (50 miles) north of the Bab al-Mandab Strait. The Houthis seized control of Mokha on Thursday. Their attack drove many people to flee to Aden, where Yemen\u2019s internationally recognised Presidential Leadership Council and government are based.
\nLocal sources also reported that government forces carried out air strikes targeting Houthi forces in Taiz governorate, which is along the Red Sea coast, and Ibb governorate, which neighbours Taiz.
\nThe developments have squeezed both sides of the Arabian Peninsula, pushing crude oil prices to over $100 a barrel for the first time since July.
\nFears over inflation have risen with the spike in energy prices, further pushing up government borrowing costs.
\nRichard Bronze of Energy Aspects told the BBC that even before the latest escalation, diverting Saudi oil via the Suez Canal into the Mediterranean and around Africa was already adding 30 days to sailing times and increasing transportation costs.
\n\u201cThe buffers that have helped the oil market manage the crisis so far are mostly gone. So oil prices will keep rising if both crises continue,\u201d he said.
\nChallenges were particularly acute in diesel markets, he said, where prices have already reached record levels that would in turn push up the costs of a range of goods as diesel is widely used in manufacturing and transportation.
\n\u201cUnless the situation across the Middle East improves, crude oil prices are likely to return to the peak of $120 per barrel seen earlier in the Iran war and could go even higher,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Riyadh Saudi Arabia has closed a critical oil pipeline after it was attacked by drones launched from Iraq, as conflict in the Middle East widens. Iraq said it had fired a military commander and launched an investigation after admitting the drone attack on its neighbour\u2019s East-West pipeline had originated in one of its provinces bordering […]<\/p>\n","protected":false},"author":2,"featured_media":566928,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-566940","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world"],"yoast_head":"\n