Saudi Arabia says drones launched from Iraq hit East-West pipeline, holds off on retaliation - Reuters

Gulf oil threatened anew as Houthis reach key island and pipeline is shut down | Reuters

Skip to main content

Exclusive news, data and analytics for financial market professionals Learn more aboutRefinitiv

* World
Browse World

+ Africa
+ Americas
+ Asia Pacific
+ China
+ Europe
+ India
+ Iran War
+ Israel and Hamas at War
+ Japan
+ Middle East
+ Reuters/Ipsos Polls
+ Ukraine and Russia at War
+ United Kingdom
+ United States
+ U.S. Midterm Elections
+ Reuters NEXT
* Business
Browse Business

+ Aerospace & Defense
+ Autos & Transportation
+ Davos
+ Energy
+ Environment
+ Finance
+ Healthcare & Pharmaceuticals
+ Media & Telecom
+ Retail & Consumer
+ Future of Health
+ Future of Money
+ Take Five
+ World at Work
* Markets
Browse Markets

+ On the Money
+ Asian Markets
+ Carbon Markets
+ Commodities
+ Currencies
+ Deals
+ Emerging Markets
+ ETFs
+ European Markets
+ Funds
+ Econ World
+ Global Market Data
+ Rates & Bonds
+ Stocks
+ U.S. Markets
+ Wealth
* Sustainability
Browse Sustainability

+ Boards, Policy & Regulation
+ Climate & Energy
+ Land Use & Biodiversity
+ Society & Equity
+ Sustainable Finance & Reporting
+ The Switch
+ Reuters Impact
+ COP31
* Legal
Browse Legal

+ Government
+ Legal Industry
+ Litigation
+ Transactional
+ US Supreme Court
* Commentary
Browse Commentary

+ Breakingviews
+ ROI: Reuters Open Interest
* Technology
+ Artificial Intelligence
+ Cybersecurity
+ Space
+ Disrupted
Investigations
Sports

+ World Cup
+ Athletics
+ Baseball
+ Basketball
+ Cricket
+ Cycling
+ Formula 1
+ Golf
+ NFL
+ NHL
+ Soccer
+ Tennis
Science
Lifestyle

+ Culture Current
City Memo
Graphics

+ Chart of the Week
Pictures
Wider Image
Podcasts

+ Reuters World News
+ Reuters Morning Bid
+ Reuters Econ World
+ On Assignment
+ Viewsroom
+ The Big View
Live
Fact Check
Video
Media Center

+ Announcements
+ Awards
+ Inside the Newsroom
+ People News
Sponsored Content

+ Reuters Plus
+ Press Releases

My NewsSign InSubscribe

Gulf oil threatened anew as Houthis reach key island and pipeline is shut down

By

Mohammed Ghobari,

Eman Abouhassiraand

Yasmine Ghania

September 11, 2026

5:35 AM EDT

Updated 4 hours ago

*
*
*

*
*
*
*
*

!Video by Saudi-backed Yemeni forces said to show clashes with Houthis

* Summary
* Companies

* Yemeni government sources say forces withdraw from Perim island
* Sources say Houthis also take nearby coastal town of Dhubab
* Lightning Houthi advance could give Iran a critical boost
* Government forces say they will seek to retake captured areas
* Crucial East-West pipeline for Saudi oil shut down after separate attack

ADEN/DUBAI, Sept 11 (Reuters) - Yemen's Iran-aligned Houthis reached the strategic island of Perim in the Bab el-Mandeb Strait on ​Friday, four Yemeni government sources told Reuters, moving to tighten their grip on a vital global shipping route in the widening Middle East war.

Meanwhile, the vital East-West oil pipeline in Saudi Arabia, which ‌has helped relieve the logjam in the Strait of Hormuz, was temporarily shut down by a drone attack coming from Iraq, Saudi officials said. This put further pressure on Gulf oil flows at a time when diplomatic efforts to ease war have stalled.

The Reuters Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here.

If the Houthis gain control of the Bab el-Mandeb Strait, on the opposite side of the Arabian Peninsula from the Strait of Hormuz, their backer Iran could gain a critical advantage in its war with the U.S., reducing supplies through a second major corridor and further raising oil prices.

The Houthi attacks ​could represent a dangerous escalation. Sources said Saudi Arabia has asked Washington for military help at a time when higher fuel prices during the war have tarnished U.S. President Donald Trump and his Republican Party politically ahead ​of November congressional elections.

Two sources from the Saudi-backed, internationally recognised Yemeni government said its forces had pulled out of Perim and that the Houthis had also taken the ⁠mainland Red Sea coastal town of Dhubab, which faces the island.

The war began with U.S. and Israeli strikes on Iran six months ago. Hormuz, conduit for about a fifth of global oil and liquefied natural gas trade, was effectively ​closed. Since then Saudi Arabia, the world's largest oil exporter and a close U.S. ally, has relied on the Red Sea route. Gulf states, industry sources and Trump have discussed pipeline expansion as one possible workaround.

Existing pipeline capacity was shut down ​temporarily after several attacks on the East-West pipeline in Saudi Arabia's Riyadh and Medina regions, state media reported, citing a source at the Saudi energy ministry.

It remained unclear who carried out the attack. Saudi Arabia said only that the drones came from Iraq, which is home to Iranian-backed militias.

Saudi Arabia has opted against retaliation so far following a request from the Iraqi prime minister, the Saudi foreign ministry said in a statement. The kingdom reserves the right to "take all measures necessary" to protect its interests, the statement said. Iraq's government ​condemned attacks.

The 1,200-kilometer (745-mile) pipeline is the key alternative route for Saudi oil to reach global markets, bypassing the Strait of Hormuz. It has been shipping 4 million to 5 million barrels per day in recent months, amounting to 4% ​to 5% of global supply, according to ship tracking companies and analysts.

The attack resulted in some injuries and damage that was being assessed, the Saudi foreign ministry said without detailing the impact on exports.

Saudi crude supply fell to the lowest levels in more than three ‌decades, the International ⁠Energy Agency said on Friday, partly due to attacks on ships transiting Bab el-Mandeb by Houthi-linked groups.

Item 1 of 6 A satellite image shows black smoke rising from an area of Saudi Arabia’s East-West oil pipeline south of Medina, Hejaz Region, Saudi Arabia September 10, 2026. European Union/Copernicus Sentinel-3/Handout via REUTERS

**\[1/6]**A satellite image shows black smoke rising from an area of Saudi Arabia’s East-West oil pipeline south of Medina, Hejaz Region, Saudi Arabia September 10, 2026. European Union/Copernicus Sentinel-3/Handout via REUTERS Purchase LicensingRights , opens new tab

Oil prices dipped on Friday but were on track to end the week above $100 a barrel for the first time since mid-May.

The Houthi military spokesperson, Yahya Saree, said maritime navigation remained safe for all shipping except Saudi vessels subject to a previously announced ban.

In a speech marking the 25th anniversary of the September 11 attacks on the U.S., Trump called Iran "the world's number one sponsor of terror". Iranian President Masoud Pezeshkian responded by saying the accusation came from "the same devils" responsible for an apparent U.S. strike on a school at the start of the conflict in February that Iran said killed more than 175 children and teachers.

YEMENI GOVERNMENT ​FORCES PLOT COUNTER-OFFENSIVE

Yemeni government forces indicated they would try ​to retake areas captured by the Houthis — mountain fighters ⁠who withstood years of devastating Saudi airstrikes during Yemen's civil war — in their lightning offensive this week along the Red Sea coastline.

They announced they would deploy weapons and aircraft to eliminate any movement of the "terrorist" Houthi militias in strategic areas, including the road leading to the coastal city of Mocha, which the militant group captured on Thursday along with the Red ​Sea islands of Hanish.

Reuters reported on T