What happened
Saudi Arabia has shut down a key oil pipeline after it was hit by drones launched from Iraq, limiting oil flow and escalating tensions in the region. The 745-mile pipeline, which carried between 4% and 5% of global oil supplies, was closed after the drone attacks resulted in injuries and damage.
The incident occurred as Iran-backed Houthi rebels in Yemen captured several strategic locations, including the island of Perim in the Bab el Mandeb Strait, which connects the Red Sea to the Gulf of Aden. The Houthis also seized the port city of Mocha and advanced on the coastal town of Dhubab, prompting the Saudi-backed Yemeni government to withdraw its forces from the area.
The attacks on the pipeline and the Houthi gains in Yemen have raised concerns about the security of oil supplies and the potential for further escalation in the region. The United States, which has been supporting Saudi Arabia in its conflict with the Houthis, has warned that it will take all necessary measures to protect its interests and those of its allies.
The situation has led to a surge in oil prices, with prices ending the week above $100 a barrel for the first time since mid-May. The conflict has also resulted in the displacement of at least 46,000 people in Yemen, according to the United Nations' International Organization for Migration.
