New: Key Saudi Oil Lifeline to Red Sea Shut After Drone Strikes

Things in the Middle East just seem to get more complicated by the day. In the latest development, reports indicate that drone strikes originating in Iraq are responsible for the shutdown of a major oil pipeline by Saudi Arabia. The catch? This pipeline is a major bypass around the Strait of Hormuz, moving oil instead to ports in the Red Sea. Several Iranian-backed militias are known to be operating in Iraq, although as yet it doesn't appear that any of them are claiming credit for the strikes.

Saudi Arabia shut down a crucial pipeline that allowed the kingdom to continue exporting crude oil after Iran closed the Strait of Hormuz, saying it had been attacked multiple times by drones fired from Iraq.

The crucial East-West pipeline can carry up to 7 million barrels of crude a day 750 miles from Saudi Arabia’s oil-producing heartland on the Persian Gulf to the port of Yanbu on the Red Sea. From there, the Saudis had been able to ship millions of barrels of oil to customers around the world.

The Saudi Foreign Ministry said several drones caused injuries and damage that the kingdom was repairing. It said the drones were fired from Iraq, where authorities have struggled to control Iran-backed militias that have repeatedly targeted Saudi infrastructure. Saudi Arabia, with the U.S., carried out rare airstrikes earlier this year against Iraqi militias, but this time, the Foreign Ministry said it would refrain from retaliating at Baghdad’s request.

Overhead photos show what appear to be major spillage from the damaged pipeline. It's unclear what countermeasures the Saudis have available for this kind of attack, but the overhead photographs make it look like the strike would have involved significant assets targeting a length of the pipeline; this doesn't look like a spot strike, but rather a serious attempt to take out a significant length of the pipeline.

Saudi Arabia shuts key pipeline that moves 5% of world's oil supply after drone attack from Iraq https://t.co/HmFYmIdnid

— Daily Mail (@DailyMail) September 12, 2026

Houthi rebels, remember, are making moves against the Bab-el-Mandeb Strait, the bottleneck for shipping traffic moving out of the Red Sea into the Gulf of Aden. This complicates things; the Saudi pipeline was intended to allow alternative routes for oil to flow, and now that alternative has been, for the time being, removed. That places the pressure back on the United States to ensure that the Strait of Hormuz remains open for non-Iranian traffic. About 20 percent of global petroleum production flows through the Strait, making it a strategic piece of real estate indeed. The upside? Iran is running out of oil. Their domestic production and exports are near zero, and Iranian citizens are waiting for hours in lines at the gasoline pumps.

And now, for the time being, one of the workarounds for shipping through the Strait of Hormuz has been taken off the board. 

Meanwhile, on Saturday, U.S. Central Command (CENTCOM) maintains that the American blockade of Iranian shipping is still in place.

CENTCOM forces have redirected 100 commercial vessels over the past 60 days since America 🇺🇸 resumed the steel wall blockade against Iran. ZERO ships have passed through the blockade without U.S. forces allowing. American service members remain laser focused on this mission. pic.twitter.com/tIV2fvtuG6

— U.S. Central Command (@CENTCOM) September 12, 2026

CENTCOM reports:

CENTCOM forces have redirected 100 commercial vessels over the past 60 days since America resumed the steel wall blockade against Iran. ZERO ships have passed through the blockade without U.S. forces allowing. American service members remain laser focused on this mission.

As of this writing, oil prices are steady, with American crude (USOIL) at 99.98 and UK Brent (UKOIL) at 104.31.

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