New oil supply fears as Houthis seize key island, Saudi pipeline attacked

Iran-aligned Houthi rebels seized Mocha and reached Perim Island in the Bab el-Mandeb Strait, while drone strikes forced Saudi Arabia to shut down its vital East-West oil pipeline. The escalations pushed crude oil above $100 a barrel and sparked international warnings over global energy supplies.

The widening conflict across the Middle East entered a dangerous new phase this week as Houthi forces advanced along the Yemeni coast and critical petroleum infrastructure inside Saudi Arabia was disabled by drone attacks. The twin developments rattled global energy markets, driving Brent crude past $US105 a barrel and pushing US national average diesel prices above $US6 a gallon for the first time.

Houthi Forces Seize Mocha and Reach Perim Island

Iran-aligned Houthi forces captured Yemen’s port city of Mocha and advanced to Perim Island in the Hanish Islands archipelago, according to Yemeni government military sources. The advance gave the group direct leverage over the Bab el-Mandeb Strait, one of the world’s most crucial maritime transit corridors.

Two sources from the Saudi-backed Yemeni government confirmed that their forces withdrew from Perim Island after the Houthis took control of the mainland Red Sea coastal town of Dhubab. Government forces and their allies relocated south along the Red Sea coast to Dhubab to maintain defensive positions near the strait.

United Nations Special Envoy for Yemen Hans Grundberg addressed the Security Council on Thursday, describing the offensive as a new and more dangerous phase in the ongoing war. He noted that the capture of Mocha provided the group with a direct presence on the approaches to one of the world’s most vital straits.

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“This escalation is unacceptable, and those who enable it bear responsibility for its consequences.”

Jenifer Neidhart de Ortiz, US representative at the UN Security Council, via ABC News & Headlines – Australian Broadcasting Corporation

Yemeni government, Iranian, and regional sources reported that the coastal advance occurred with direct guidance from Iran’s Revolutionary Guard Corps. Meanwhile, Houthi spokesperson Mohammed Abdulsalam stated that the group’s operations were defensive and would stop once attacks on Yemen stopped.

Saudi Arabia Shuts Down East-West Pipeline After Drone Strikes

As maritime security deteriorated in the Red Sea, Saudi Arabia shut down its major East-West oil pipeline following drone attacks in the Riyadh and Madinah regions. The Saudi Energy Ministry announced on Friday that the pipeline closure was implemented as a precautionary measure after multiple strikes caused human injuries and facility damage.

The Saudi Foreign Ministry stated that the drones originated from Iraq, where Iranian-backed militias operate. An investigation prompted the Iraqi prime minister to dismiss a military commander and order the closure of the Shalamcheh border crossing with Iran. Saudi Arabia withheld immediate military retaliation after a request from the Iraqi prime minister, though the kingdom stated that it reserves the right to take all necessary measures to protect its sovereignty.

New oil supply fears as Houthis seize key island, Saudi pipeline attacked
Photo: timesofindia.indiatimes.com

Built in the 1980s, the approximately 1,200-kilometre East-West pipeline carries crude across the Arabian Peninsula from oil-producing regions in the east to Yanbu on the Red Sea coast. The pipeline had been moving between 4 million and 5 million barrels of oil per day, representing roughly 4 per cent to 5 per cent of global supply. By early June, Saudi Arabia had more than doubled exports from Yanbu to bypass the blockaded Strait of Hormuz, through which about one-fifth of global oil supplies previously passed.

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Strait Pressures and Broader Regional Impacts

The convergence of pipeline shutdowns and Houthi territorial gains has severely restricted energy export channels for the world’s largest oil exporter. Saudi crude flows through Bab el-Mandeb had already fallen sharply since the conflict began, leaving crude tankers facing significantly longer routes, higher shipping expenses, and surging global energy prices.

Houthis Seize Perim Island – LIVE Breaking News Coverage (with Iran & Saudi Arabia Updates)

Pakistan delivered a Saudi warning to Tehran to rein in the Houthis and prevent further escalation. However, a senior Iranian official responded that Iran does not control the Houthis.

The maritime and pipeline disruptions coincided with broader military engagements. US officials confirmed that Iranian strikes on Muwaffaq Salti Air Base in Jordan damaged several military aircraft earlier in the week, including an A-10 Thunderbolt II that lost a wing and approximately eight F-15 fighter jets that sustained light damage before returning to service.

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