Saudi Arabia says Iraqi drones hit oil pipeline as Houthis seize Red Sea island

Saudi Arabia says drones launched from Iraq have hit a major oil pipeline and led to its closure, as Yemen's Iranian-backed Houthi rebels captured a strategic island at the southern entrance to the Red Sea.

The foreign ministry condemned "the targeting of the East–West pipeline in the Riyadh and Medina regions by several drones coming from Iraq, which caused human injuries and damage".

An energy ministry official told the SPA news agency that the pipeline was temporarily closed as a precaution after the attacks on Thursday morning, local time.

"At the request of the Iraqi prime minister … (Riyadh) has chosen not to respond at this stage and to support the efforts of the Iraqi government … to prevent attacks launched from Iraq against the Kingdom and neighbouring countries," the foreign ministry said.

But it stressed that Saudi Arabia "reserves the right to take all necessary measures to protect its sovereignty, its security, its facilities," and its inhabitants.

Iraq's government condemned the assault and an Iraqi military commander was dismissed early on Saturday after investigations confirmed the latest drone attacks originated from the country, according to a statement by Iraq's prime minister's office.

The commander led operations in Maysan province in southern Iraq, according to the statement.

Saudi Arabia and the US bombed Iranian-backed militias in Iraq in July, after blaming them for drone attacks on Saudi oil facilities that had been claimed by the Houthis.

Regional officials told the Associated Press that the Houthis helped the Iraqi militias plan and execute the attacks.

Since the start of the war in the Middle East, Riyadh has increased its use of this pipeline, which links Abqaiq, near the Gulf, to the port of Yanbu on the Red Sea, in order to bypass the closure of the Strait of Hormuz by Iran.

By early June, Saudi Arabia had more than doubled oil exports from the Red Sea port at the pipeline's western end to more than 5 million barrels per day, according to the International Energy Agency.

Houthis seize strategic island

It comes as the Houthis made their biggest territorial gains in years along the Bab el-Mandeb Strait, one of the world's key shipping lanes.

The group's capture of Mayun, a tiny, barren volcanic island inside the strait also known as Perim, was confirmed by a senior military official with Yemen's internationally recognised government and by a Houthi official. Both spoke on condition of anonymity because they were not authorised to talk to journalists.

In a statement on Friday, the Houthi armed forces boasted of gains along the coast without mentioning the island, the port city of Mocha or the Bab el-Mandeb Strait.

They vowed "escalation for escalation" in the confrontation with Saudi Arabia, while declaring that "maritime navigation is safe for all companies except for Saudi vessels".

Still, markets are nervous, and experts have described the Houthis as highly unpredictable.

Crude prices this week soared again above $US100 a barrel, giving Tehran more leverage in any talks.

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The advance could boost Iran's strategy of driving up world oil and gas prices to pressure the United States.

The Houthis have been attacking Saudi shipping on the Red Sea since declaring a blockade in July, as well as hitting oil infrastructure inside Saudi Arabia.

The rebels said they acted in response to the kingdom's years-long blockade of Houthi-held parts of Yemen.

Saudi Arabia struck the airport in Mocha after the Houthis seized it on Thursday, a Houthi broadcaster said. There were no reports of damage or deaths.

A senior military official with Yemen's internationally recognised government told the AP they were stunned that the Saudi air force did not try to prevent the capture of Mocha, about 80 kilometres from the strait.

He assessed that Saudi Arabia did not get a green light from the US to embark on a large-scale air campaign.

The official, who spoke on condition of anonymity, also blamed "lack of coordination" between Yemen's army and multiple allied militias, saying it gave the Houthis "a priceless opportunity".