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Saudi Arabia has temporarily shut down a major oil pipeline following a drone attack, raising concerns about global energy supply and prices. The incident occurs amidst heightened tensions in the Middle East, with US officials suggesting Iranian involvement.
Why it matters
The disruption of a pipeline carrying 4-5% of global oil supply threatens to exacerbate inflation and energy costs during an already volatile geopolitical period.
Saudi Arabia has shut down its East-West pipeline after the vital oil conduit came under aerial attack in the widening Middle East war, threatening to send energy prices even higher.
The world's largest crude oil exporter temporarily closed the pipeline after a drone attack that both Baghdad and Riyadh said had originated in Iraq, where Iranian-backed militias operate.
Iraq has dismissed a military commander in response to the attack.
The 1,200km pipeline running across the Arabian Peninsula had helped Saudi Arabia to bypass a shipping logjam in the Strait of Hormuz, where tanker traffic has slowed to a trickle due to the six-month war between the US and Iran.
The Saudi Energy Ministry said it had shut the pipeline as a precaution. The line has been moving four million to five million barrels per day in recent months, amounting to 4% to 5% of global supply.
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