Crude oil prices rose more than 4 per cent on Monday as Saudi Arabia shut down its East-West Pipeline following drone attacks. The pipeline, which serves as the primary route for West Asian oil to bypass the blockaded Strait of Hormuz, was closed on Friday as a precautionary measure,
according to Saudi Arabia. Benchmark Brent crude futures climbed above $109 a barrel, and the average retail price of diesel in the United States reached a new all-time high of more than $6.23 a gallon.
Infrastructure Damage and Market Impact
Satellite imagery has revealed fires damaging sections of the pipeline. While Riyadh has not provided a firm estimate for when operations will resume, traders warned that a shutdown lasting more than a few days could eliminate up to 4 per cent of the global oil supply. The East-West pipeline is critical to Saudi exports; by early June, the International Energy Agency reported that Saudi Arabia had more than doubled exports from the Red Sea port at the pipeline’s terminus to over 5 million barrels per day.
The disruption comes as the Strait of Hormuz, the world’s most important oil shipping lane, has remained largely closed since the U.S. and Israel attacked Iran at the end of February. Although U.S. Energy Secretary Chris Wright stated on Monday that the number of ships crossing the strait covertly with U.S. support is increasing, independent monitors suggested oil flows may have dropped this month following a re-escalation of fighting after a quiet August.
Regional Military Escalation
The pipeline attack, which Riyadh blamed on Iran-backed fighters in Iraq, coincided with a fresh offensive by Yemen’s Iran-aligned Houthis. The Houthis claimed to have fired dozens of drones and missiles at a military airbase in Khamis Mushait in southern Saudi Arabia, targeting ammunition depots, runways, radar systems, and aircraft hangars. The group described the strike as retaliation for hundreds of Saudi air strikes in Yemen in recent days.
The Houthis also conducted a lightning advance last week in Yemen, which resulted in the seizure of an island at the mouth of the Red Sea on Friday. In response to the Khamis Mushait attack, Saudi authorities issued emergency alerts in that city and three other southern cities that have previously been targeted by Houthi fire.
Diplomatic Failures and International Response
Tensions led to the postponement of a meeting in Oman planned for Monday between Iran and Gulf states. The talks were intended to negotiate the reopening of the Strait of Hormuz. Oman’s Foreign Minister Sayyid Badr Albusaidi announced the postponement overnight; Iran subsequently claimed the delay occurred at the request of Saudi Arabia.
In Iraq, Prime Minister Ali al-Zaidi ordered an investigation into the operations command of Maysan province, located along the Iranian border, following the pipeline attacks. This move included the dismissal of the provincial commander and the provincial police chief. Iraq also closed two main official border crossings with Iran—Shalamcheh and Chazabeh—to halt all commercial and passenger traffic until further notice. While Iran-backed militias in Iraq denied responsibility for the pipeline strikes, they praised the Houthis for their battlefield victories.
U.S. Involvement and Political Pressure
U.S. President Donald Trump stated over the weekend that he had spoken with Saudi Crown Prince Mohammed bin Salman, and noted that the Houthis had also contacted Washington to urge the U.S. to stay out of the dispute. Trump wrote on Truth Social that the failing Nation of Iran
wants to reach a deal with Washington quickly and badly,
though he stated he would determine if the U.S. chooses to engage.
Despite these communications, three sources told Reuters that Washington has rebuffed requests from the Crown Prince to intervene in Yemen beyond the provision of intelligence. This follows a period in 2025 where the U.S. bombed Houthi targets for two months before Trump halted the campaign after a ceasefire was reached.
Summary of Regional Disruptions
| Entity/Location | Action/Status | Attributed Cause/Context |
|---|---|---|
| East-West Pipeline | Shut down (Friday) | Drone attacks attributed to Iran-backed fighters in Iraq |
| Strait of Hormuz | Largely closed | U.S. and Israeli attacks on Iran (late February) |
| Khamis Mushait Airbase | Attacked (Monday) | Houthi missiles and drones |
| Shalamcheh & Chazabeh Crossings | Closed | Iraqi investigation into border “violations” |