Iraq races to contain fallout after local Iran-backed militias accused of attacking Saudi pipeline

Iraq is racing to contain the fallout after Iran-backed militias based on its territory were accused of attacking a Saudi pipeline, the Associated Press reports. The accusation lands at a dangerous moment, drawing Iraq further into the conflict between Iran and Saudi Arabia as fighting and supply disruptions spread across the Middle East.

The pipeline shutdown is one of several disruptions roiling global energy markets. Oil briefly topped $110 a barrel after the attack, and diesel prices have crossed $6 a gallon for the first time on record, raising fuel and shipping costs for businesses, farmers and consumers far beyond the region.

What to watch now is how Iraq's government responds and whether it can rein in the militias operating from its soil, how quickly Saudi Arabia restores the pipeline, and how much further the conflict spreads across Iraq, Yemen and the Gulf.