Saudi Arabia has closed a critical oil pipeline after it was attacked by drones launched from Iraq, as conflict in the Middle East widens.

Iraq said it had fired a military commander and launched an investigation after admitting the drone attack on its neighbour’s East-West pipeline had originated in one of its provinces bordering Iran.

The 1,200km (745 mile) pipeline has helped Saudi Arabia – the world’s largest crude oil exporter – bypass the Strait of Hormuz.

The incident comes amid a major advance by the Iranian-backed Houthi rebels in Yemen, putting more pressure on global oil shipping routes as the US-Iran war stretches into its seventh month.

Riyadh on Friday said it had shut the pipeline as a precaution, as satellite images of scorched ground and smoke near the site emerged.

The foreign ministry said the attack resulted in some injuries and damage, which was still being assessed.

The pipeline has been moving 4% to 5% of global oil supply, news agency Reuters has reported, citing ship tracking companies and analysts.

Saudi Arabia has chosen not to retaliate at this stage, its foreign ministry says, following a call from Iraq’s prime minister.

It said the kingdom would “support the efforts of the Iraqi government” to “prevent attacks” launched from the country against neighbouring states.

“The Kingdom of Saudi Arabia affirms that it reserves its right to take all necessary measures to safeguard its sovereignty and security, protect its facilities, and ensure the safety of its citizens and residents,” the statement added.

The Iraqi prime minister’s office in its own statement said the operations commander in the Maysan governorate – a province which borders Iran – had been removed from his post following confirmation the drone attack had been launched from that region.