Saudi oil routes squeezed as Houthis seize Yemen coast and pipeline shuts down
The double blow closes off major transit routes for Gulf crude, leaving Riyadh with few safe options to export its oil.
Houthi forces have seized complete control of Yemen’s Red Sea coast, just as Saudi Arabia shut down its main East-West oil pipeline following a drone strike launched from Iraq.
The dual developments have abruptly choked the primary bypasses for Middle Eastern oil, raising fears of a severe squeeze on global energy markets.
What happened to the Saudi oil pipeline?
The pipeline shutdown is a direct response to a drone attack on Tuesday, 10 September. Satellite imagery captured by the European Union’s Copernicus Sentinel-3 satellite showed thick black smoke rising near the pipeline, south of the holy city of Medina.
Saudi authorities described the closure of the East-West pipeline as a precautionary measure, but the diplomatic fallout has been immediate.
Iraqi Prime Minister Ali al-Zaidi confirmed the drone was launched from Iraqi territory. In an attempt to defuse tensions with Riyadh, al-Zaidi ordered an investigation and dismissed a regional army commander. For now, Saudi Arabia is holding back from military retaliation, giving Baghdad time to rein in the militias operating within its borders.
Why does Houthi control of the Red Sea coast matter?
Further south, the Iran-backed Houthi movement has completed a rapid military offensive, driving Yemeni government forces entirely off the Red Sea coast. The advance brings Houthi fighters directly alongside the Bab al-Mandab Strait, one of the world's busiest maritime chokepoints.
The Houthis have insisted they have no plans to disrupt general international shipping. However, they explicitly warned that they will target any vessel flying a Saudi flag or carrying Saudi cargo.
The human toll of the sudden fighting in Yemen is growing rapidly. The United Nations reported that at least 46,000 people have been displaced in just one week since the latest Houthi offensive began.
What happens next to global energy routes?
The threats hit Riyadh where it hurts. Ever since the conflict between the United States, Israel, and Iran effectively shut down the Strait of Hormuz—the traditional exit route for Persian Gulf oil—Saudi Arabia has been forced to adapt.
It has relied heavily on shipping oil out of its Red Sea ports, or pumping it across the peninsula via the East-West pipeline.
With the pipeline closed and the Houthis commanding the coast near the Bab al-Mandab, both of Saudi Arabia's fallback routes are suddenly compromised. How long Saudi Arabia can afford to wait for Iraq to police its own borders, or how it plans to protect its tankers in the Red Sea, remains unanswered.
Key numbers
- 46,000
- 10 September 2026
Questions readers are asking
Why did Saudi Arabia shut down the East-West pipeline?
Riyadh suspended the pipeline as a precautionary measure after a drone strike launched from Iraq caused fires near the line south of Medina.
Will Houthi forces attack all ships in the Red Sea?
The Houthis have stated they will not target general international shipping, but they have explicitly declared their intention to target any vessels carrying Saudi cargo or flying a Saudi flag.
