Iraq Under Pressure After Drone Strikes Close Key Saudi Pipeline

By Khalid Al-Ansary and Devika Krishna Kumar

Sep 12, 2026 (Bloomberg) –Iraq is moving to contain the fallout from attacks that caused the closure of Saudi Arabia’s East-West pipeline, after the strikes were found to have been launched from inside the country.

Early on Saturday, Iraqi Prime Minister Ali Al-Zaidi fired the operations commander of Maysan province and ordered an investigation after determining that attacks targeting the pipeline came from a site within the region, which borders Iran, according to a statement.

Saudi Arabia shut the conduit as a precautionary measure on Friday after several drones attacked the major pipeline in the Riyadh and Madinah regions, according to the Saudi Ministry of Foreign Affairs.

Iraq has been under pressure to try and rein in local Iran-backed militias from helping other proxy groups across the region, but has had little success and its territory has become a key base for Tehran’s retaliation across the Gulf.

The East-West pipeline has become a crucial lifeline for Saudi Arabia’s oil exports, particularly since disruption from the Iran war. The 7 million barrel-a-day conduit quickly reached full capacity earlier this year after tanker traffic came to a near standstill in the Strait of Hormuz.

Iran-backed Houthi forces have upped the pressure though, progressing along Yemen’s Red Sea coast toward the Bab al-Mandeb Strait, gaining ground while continuing missile and drone attacks on Saudi Arabia, forcing it to halt several energy sites. 

Read More: Aramco Ramped East-West Pipeline to Maximum as Hormuz Shipping Crisis Deepened

If the group increases its control over the area, they’d have more power to disrupt shipping through another energy chokepoint, adding pressure to already increased oil prices. It would also threaten Saudi Arabia’s own efforts to protect its economy from regional conflict.

Oil prices were little changed after the Saudi ministry statement, with Brent futures trading at about $105 a barrel. Brent surged on Thursday, almost reaching $110, on speculation about the impact of the latest conflict on energy supplies in the region.

Since the drone attacks, Iraq has also ordered the closure of the Shalamcheh border crossing with Iran as a precautionary measure, Reuters reported, citing unidentified security sources. 

© 2026 Bloomberg L.P.

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