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Iraq Scrambles to Address Pipeline Attack Amid Rising Regional Tensions
BAGHDAD – Iraq’s government is urgently responding after Iran-backed militias were accused of launching a drone attack on Saudi Arabia’s critical East-West oil pipeline, a key artery for the world’s largest oil producer. The strike has temporarily shut down the pipeline, which serves as an alternative route to the strategically vital but increasingly threatened Strait of Hormuz.
While an umbrella group representing Iran-aligned militias in Iraq has denied involvement and expressed support for the Iran-backed Houthi rebels in Yemen, Iraq’s authorities acknowledged that the attacks originated from their territory. In response, Baghdad has pledged a thorough investigation and dismissed two senior officials connected to the region near the Iran border.
The pipeline attack coincides with intensified pressure from Yemen’s Houthi rebels on the Bab el-Mandeb Strait, a crucial maritime chokepoint at the southern end of the Red Sea that handles about 12% of global trade. The Houthis have been targeting Saudi Arabia and its maritime routes, raising concerns about further disruptions to oil exports.
Sources with knowledge of the situation have revealed coordination between the Iraqi militias and the Houthis in recent assaults against Saudi targets.
Amid escalating worries over global oil supply and prices after six months of conflict, U.S. President Donald Trump placed probable blame on Iran for the pipeline attack but sought to ease tensions.
Trump noted that the Houthis had communicated a desire to avoid conflict with the U.S. and had allowed most ships to pass through the Red Sea. The White House indicated that prior discussions had taken place with the Houthis, though details remain sparse.
Iranian President Masoud Pezeshkian, speaking on the sidelines of the BRICS summit in India, emphasized that Iran is not at war with Saudi Arabia and highlighted the Houthis’ independent struggles.
Iraq’s Crackdown and Regional Reactions
Despite militia denials, Baghdad is under increasing pressure to control Iran-backed armed groups operating within its borders. The government has set a September 30 deadline for militia disarmament, but many powerful factions, including those backed by Iran, have resisted compliance.
Prime Minister Ali al-Zaidi announced an investigation into the military command in Maysan province, near the Iranian border, leading to the dismissal of the province’s military commander and police chief.
Saudi Arabia closed the pipeline on Friday following the attack, describing the shutdown as a precautionary step. Riyadh attributed the assault to drones launched from Iraqi territory but refrained from immediate retaliation, instead urging Iraq to take necessary measures.
The attack drew condemnation from several Arab states, including Kuwait, the UAE, Oman, and Egypt.
Built in the 1980s, the East-West pipeline is vital to Saudi Arabia’s oil exports, especially after disruptions at the Strait of Hormuz. According to the International Energy Agency, Saudi Arabia had more than doubled oil shipments from the pipeline’s Red Sea terminus by early June.
Iran-backed militias in Iraq have increasingly targeted U.S.-linked sites since early 2025, following U.S. and Israeli strikes on Iran. Saudi Arabia and the U.S. conducted airstrikes against these militias in July, blaming them for drone attacks on Saudi oil infrastructure attributed to the Houthis. Regional officials have reported that the Houthis assisted in planning these attacks.
In a move possibly connected to the pipeline investigation, Iraq also closed two important border crossings with Iran, Shalamcheh and Chazabeh, according to Iranian provincial officials.
Diplomatic Efforts Amid Uncertain Waters
Meanwhile, Iran is preparing for a regional meeting with Gulf states to discuss maritime shipping through the Strait of Hormuz, following talks with Oman. Iran has proposed transit fees and asserted control over shipping routes entering and leaving the Persian Gulf, demanding the U.S. lift its blockade as a precondition for open waterways.
However, Bahrain has rejected participation in any group talks involving Iran until diplomatic relations are restored, underscoring the ongoing complexity of regional diplomacy.
As tensions persist across the Middle East, global markets and governments remain watchful for further developments that could impact energy supplies and regional stability.