Saudi Arabia has shut down its critical East-West oil pipeline after drone strikes launched from Iraqi territory hit pumping stations near Riyadh and Medina, injuring several people and threatening a route the kingdom relies on to bypass Iranian restrictions on the Strait of Hormuz. The attack compounds turmoil in global energy markets, coming just days after Iran-backed Houthi rebels announced they had seized the entire Yemeni side of the Bab al-Mandab Strait and Yemen's Red Sea coastline, tightening their grip on a corridor vital to shipping between Europe and Asia.

The 1,200km pipeline normally carries around seven million barrels of crude a day; Saudi officials said it was halted as a precaution following "several attacks" on Thursday morning, while Iraq condemned the strikes and ordered an investigation. Brent crude settled at $104.56 a barrel, up more than 8% over the week, and US diesel prices topped $6 a gallon for the first time. Separately, Houthi forces reportedly completed their takeover of Mayyun Island and the wider strait area after a week-long offensive that left hundreds dead, raising fears of further attacks on Saudi tankers.