Iraq has shut three border crossings with Iran after a drone strike hit Saudi Arabia's East-West pipeline, a route that carries oil around the Strait of Hormuz. The closure comes as a U.S. blockade of Hormuz keeps diverting tankers and Houthi forces tighten their grip on Yemen's Red Sea coast, layering fresh risk onto crude oil transit routes.
Pipeline attack cuts a Hormuz workaround
Iraq closed three border crossings with Iran following a drone strike on Saudi Arabia's East-West pipeline, which Riyadh and Baghdad said was launched from Iraqi territory. The pipeline moves 4-5 million barrels of oil a day, equivalent to 4-5% of global supply, to the Red Sea and serves as an alternative route that bypasses Hormuz. Iraq's prime minister removed a military commander stationed near the Iranian border and ordered an investigation, while Bahrain called the strike a violation of international law and backed Saudi Arabia's right to respond.
Blockade keeps tankers out of Hormuz
The U.S. Central Command blockade of the strait, reinstated on July 14, has diverted 100 vessels attempting to enter or leave Iranian ports. According to CENTCOM: "ZERO ships have passed through the blockade without U.S. forces allowing". An earlier blockade running from April 13 to June 18 diverted about 140 ships.
An Iranian source told Tasnim that a new understanding between Iran and Oman does not reopen Hormuz immediately but lays groundwork for a possible reopening, one that would depend entirely on Washington meeting Tehran's conditions. A senior Iranian official separately told Reuters that Monday's meeting between Iran and Gulf states in Oman is unlikely to produce a signed agreement, since Tehran wants its control over the strait formally recognized so it can charge ships transit fees, a demand Washington has rejected. Bahrain has said it will not join any Hormuz meeting involving Iran until diplomatic relations are restored.
Houthi forces tighten grip on the Red Sea
Iran-aligned Houthi forces have tightened their control over Yemen's Red Sea coastline and the Bab el-Mandeb Strait, another key maritime chokepoint. Saudi-backed Yemeni government forces said they attacked Houthi fighters near the port city of Mocha, and Saudi Crown Prince Mohammed bin Salman asked President Trump for U.S. military assistance against the Houthis. Trump said Washington would provide intelligence support but would not intervene directly.
Source: Investing.com
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