By Mohammed Ghobari, Eman Abouhassira and Yasmine Ghania
ADEN/DUBAI (Reuters) - Yemen's Iran-aligned Houthis reached the strategic island of Perim in the Bab el-Mandeb Strait on Friday, four Yemeni government sources told Reuters, moving to tighten their grip on a vital global shipping route in the widening Middle East war.
Meanwhile, the vital East-West oil pipeline in Saudi Arabia, which has helped relieve the logjam in the Strait of Hormuz, was temporarily shut down by a drone attack coming from Iraq, Saudi officials said. This put further pressure on Gulf oil flows at a time when diplomatic efforts to ease war have stalled.
If the Houthis gain control of the Bab el-Mandeb Strait, on the opposite side of the Arabian Peninsula from the Strait of Hormuz, their backer Iran could gain a critical advantage in its war with the U.S., reducing supplies through a second major corridor and further raising oil prices.
The Houthi attacks could represent a dangerous escalation. Sources said Saudi Arabia has asked Washington for military help at a time when higher fuel prices during the war have tarnished U.S. President Donald Trump and his Republican Party politically ahead of November congressional elections.
Two sources from the Saudi-backed, internationally recognised Yemeni government said its forces had pulled out of Perim and that the Houthis had also taken the mainland Red Sea coastal town of Dhubab, which faces the island.
The war began with U.S. and Israeli strikes on Iran six months ago. Hormuz, conduit for about a fifth of global oil and liquefied natural gas trade, was effectively closed. Since then Saudi Arabia, the world's largest oil exporter and a close U.S. ally, has relied on the Red Sea route. Gulf states, industry sources and Trump have discussed pipeline expansion as one possible workaround.
Existing pipeline capacity was shut down temporarily after several attacks on the East-West pipeline in Saudi Arabia's Riyadh and Medina regions, state media reported, citing a source at the Saudi energy ministry.
It remained unclear who carried out the attack. Saudi Arabia said only that the drones came from Iraq, which is home to Iranian-backed militias.
Saudi Arabia has opted against retaliation so far following a request from the Iraqi prime minister, the Saudi foreign ministry said in a statement. The kingdom reserves the right to "take all measures necessary" to protect its interests, the statement said. Iraq's government condemned attacks.
The 1,200-kilometer (745-mile) pipeline is the key alternative route for Saudi oil to reach global markets, bypassing the Strait of Hormuz. It has been shipping 4 million to 5 million barrels per day in recent months, amounting to 4% to 5% of global supply, according to ship tracking companies and analysts.
The attack resulted in some injuries and damage that was being assessed, the Saudi foreign ministry said without detailing the impact on exports.
Saudi crude supply fell to the lowest levels in more than three decades, the International Energy Agency said on Friday, partly due to attacks on ships transiting Bab el-Mandeb by Houthi-linked groups.
Oil prices dipped on Friday but were on track to end the week above $100 a barrel for the first time since mid-May.
The Houthi military spokesperson, Yahya Saree, said maritime navigation remained safe for all shipping except Saudi vessels subject to a previously announced ban.
In a speech marking the 25th anniversary of the September 11 attacks on the U.S., Trump called Iran "the world's number one sponsor of terror". Iranian President Masoud Pezeshkian responded by saying the accusation came from "the same devils" responsible for an apparent U.S. strike on a school at the start of the conflict in February that Iran said killed more than 175 children and teachers.
YEMENI GOVERNMENT FORCES PLOT COUNTER-OFFENSIVE
Yemeni government forces indicated they would try to retake areas captured by the Houthis — mountain fighters who withstood years of devastating Saudi airstrikes during Yemen's civil war — in their lightning offensive this week along the Red Sea coastline.
They announced they would deploy weapons and aircraft to eliminate any movement of the "terrorist" Houthi militias in strategic areas, including the road leading to the coastal city of Mocha, which the militant group captured on Thursday along with the Red Sea islands of Hanish.
Reuters reported on Thursday that the dramatic Houthi advance down Yemen's Red Sea coast came with direct guidance from Iran's Revolutionary Guards.
Iran told the Houthis last week to escalate their attacks on Saudi Arabia and promised more funding, weapons and senior officers to help them do so, two Iranian sources said.
Iran describes the Houthis as an ally but publicly denies giving them military direction, saying they are "not a proxy".
SAUDI CROWN PRINCE ASKED TRUMP FOR HELP, SOURCES SAY
Saudi Crown Prince Mohammed bin Salman called Trump at least twice on Thursday to request U.S. military help in fighting the Houthis, two sources familiar with the matter told Reuters on Friday, confirming an earlier report by Axios.
Washington told Riyadh it was not willing to take direct military action for now but would help with intelligence sharing and targeting, the two sources said.
The White House did not address a Reuters question on any phone calls between the two leaders, but a senior administration official speaking on the condition of anonymity said Washington was in continuous dialogue with Saudi Arabia and the Yemeni government.
(Reporting by Mohammed Ghobari in Aden, Eman Abouhassira and Maha El Dahan in Dubai, Yasmine Ghania and Ahmed Tolba in Cairo, Catherine Cartier in Beirut, Samia Nakhoul in Ankara, and Jacob Bogage in Washington; Writing by Michael Georgy, Gareth Jones and Daniel Trotta; Editing by Aidan Lewis, Hugh Lawson and David Gregorio)
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