(Seoul = Yonhap News) Reporter Kwak Min-seo = As the crude oil transportation network of Saudi Arabia, the world's largest crude oil exporter, continues to falter, the country is at a crossroads as to whether an 'energy crisis' from the Middle East will occur.
Saudi Arabia has been operating an alternative transportation network to bypass Iran's blockade of the Strait of Hormuz, but it has faced triple pressure as the East-West Pipeline, a key land transportation route, has been attacked following waves of attacks by Houthi rebels in the Bab el-Mandeb Strait leading to the Red Sea.
International oil prices once soared to $110 per barrel, increasing market anxiety.
According to Reuters on the 11th (local time), a drone attack targeting Saudi Arabia's Riyadh and Medina areas occurred the previous day, halting operation of the East-West Pipeline, a key oil pipeline.
The East-West Pipeline is an oil pipeline about 1,200 km long that crosses the Arabian Peninsula and connects to Yanbu Port on the Red Sea coast. Saudi Arabia has been transporting about 5 million barrels of crude oil per day via this route since Iran blocked the Strait of Hormuz.
This amounts to 4-5% of the world's crude oil supply.
It was confirmed that the drone used in this attack was launched from Iraq. The Iraqi Prime Minister's Office announced on the 12th that it had confirmed that the drone was launched from its territory past midnight and that it had dismissed one military commander in connection with this.
Iraq also closed the Shalamche border crossing near the border with Iran and began an operation to track down those behind the attack.
Maisan Province in southern Iraq, where the recently dismissed commander oversaw the operation, borders Iran and is an area considered a major base for pro-Iranian Shia forces.
The Saudi Ministry of Foreign Affairs announced that it had decided not to retaliate immediately at the request of the Iraqi government.
However, this incident is expected to cause even more serious disruption to crude oil exports from Saudi Arabia.
According to Kepler, a maritime information company, Saudi Arabia's crude oil exports last month reached only 3.2 million barrels per day, already the lowest in 13 years.
This is less than half of the daily export volume before the war (about 7 million barrels).
In addition, as the East-West pipeline is blocked, Saudi Arabia's crude oil export capacity is bound to be further reduced.
In particular, this attack occurred as the Houthi Yemeni rebels, the core of Iran's 'Axis of Resistance', quickly took control of key strategic points in the Bab el-Mandeb Strait at the entrance to the Red Sea.
According to the Associated Press and AFP news agencies, the Houthis reportedly took over Perim Island, a strategic point in the Bab el-Mandeb Strait, one day after seizing Mocha, a major port on the Red Sea coast.
Perim Island, also known as Mayun Island, is located in the middle of the Bab el-Mandeb Strait and is a strategic base for dividing the waterways of the strait. Citing a Yemeni government official, AFP reported that the Houthis have effectively secured control over the Bab el-Mandeb Strait area on the Yemeni side.
Furthermore, if the Houthis completely take control of the Bab el-Mandeb Strait, Saudi Arabia will be blocked from the Strait of Hormuz in the east to the oil transport route to the Red Sea in the west.
From Iran's perspective, the Houthis' control of the Bab el-Mandeb Strait also has important strategic significance. This is because if crude oil transportation through the Bab el-Mandeb Strait decreases, international oil prices will rise, which will have the effect of putting pressure on the United States and Saudi Arabia.
There were also reports that Iran directly commanded the operation as Yemen's pro-Iran Houthi rebels took control of key Red Sea areas.
Citing Yemeni government and Iranian sources, Reuters reported that the Houthi rebels received direct command from the Iranian Revolutionary Guard during their advance toward Mocha on the 10th.
However, Iran calls the Houthis an 'allied force' but denies that they are a 'proxy force'.
Saudi Arabia directly requested help from the United States. Two sources familiar with the matter told Reuters that Saudi Crown Prince Mohammed bin Salman called U.S. President Donald Trump at least twice on the 10th to request military support to fight the Houthis.
It has been reported that the United States initially rejected Crown Prince Bin Salman's request. The United States' position is that it will not create a new front with the Houthis at a time when military power is concentrated in the Strait of Hormuz.
However, it is reported that the Trump administration is also monitoring the recent intensification of the Houthi rebels' offensive and continuing discussions with the Saudi and Yemeni governments.
Depending on the future war situation, there is a possibility that the war in the Middle East may further spread, with not only the United States and Iran, but also Saudi Arabia and Iraq being involved in a conflict.
Meanwhile, the United States and Iran continued their sharp war of nerves on this day.
At a memorial service commemorating the 25th anniversary of the September 11 attacks held at the Pentagon building near Washington DC on this day, President Trump criticized Iran as "the world's largest state sponsor of terrorism."
In response, Iranian President Massoud Fezeshikian responded by saying that "the very devils (who attacked the children)" were blaming Iran, referring to the February 28 incident in which 182 people, including children, were killed at an elementary school in southern Iran due to an accidental bombing by the U.S. military.
Market anxiety is growing again.
According to the US daily New York Times (NYT), Brent crude oil, the international oil price benchmark, soared to about $110 per barrel at one point during the day.
The price of diesel oil, which is directly related to the cost of living in the United States, also jumped to an average of $6.06 per gallon.
According to the American Automobile Association (AAA), the price of diesel oil has risen by more than 60% since the outbreak of the war, and the average price of gasoline in the United States has also risen by about 44% since the war.
The surge in energy prices is also increasing inflation pressure. There are observations that as the rise in diesel and gasoline prices leads to a burden on consumers, it could also act as bad news for President Trump and the Republican Party ahead of the midterm elections in November.
