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Saudi Oil Pipeline Hit, Apple Faces Gaza Scrutiny, Anthropic Flags Claude Misuse

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Sunday, September 13, 2026

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Saudi Arabia has shut its critical East-West oil pipeline after a drone attack launched from Iraq, threatening a key route for global crude supplies. Meanwhile, an Israeli Air Force post using Apple’s new iPhone Duo with Gaza imagery has renewed scrutiny of the tech giant’s Israeli R&D ties, while Anthropic says actors in Houthi-controlled Yemen used Claude to help develop guided weapons, including a ballistic missile designed to travel more than 2,000km.

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Saudi Pipeline Attack Threatens Key Oil Lifeline as Global Supply Tightens

🔹 What Is It About

Saudi Arabia has temporarily shut its 1,200km East-West oil pipeline after drones launched from Iraq struck sections of the route in Riyadh and Medina, causing injuries and damage. The Saudi Energy Ministry described the shutdown as a precaution while specialised teams assess the pipeline. Iraq has condemned the attack, launched an investigation and dismissed the military commander overseeing Maysan province, where Baghdad confirmed the drones originated. No group has claimed responsibility.

🔹 Why It Matters

The East-West pipeline has become one of the most important arteries in the global oil market, carrying around 4 million to 5 million barrels per day, equivalent to roughly 4% to 5% of global supply. It allows Saudi crude to reach the Red Sea without passing through the Strait of Hormuz, where exports have already been heavily disrupted by the Iran war. Brent crude is now above $104 a barrel, compared with around $72 before the conflict. Ben Cahill of the Atlantic Council called the shutdown “a real blow,” describing the route as Saudi Arabia’s “principal bypass option to avoid the Strait of Hormuz.”

🔹 What’s Next

Saudi Arabia has chosen not to retaliate at this stage following a request from the Iraqi Prime Minister, although Riyadh says it reserves the right to take necessary measures to protect its interests. How quickly the pipeline can reopen is now crucial. A previous strike in April was repaired within three days, but Saudi authorities have not disclosed the extent of the latest damage. With Hormuz constrained and security risks rising around the Red Sea, analysts warn prolonged disruption could leave the oil market with fewer buffers and push prices higher.

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Money20/20 Middle East: Fintech’s Biggest Names Head to Riyadh

For three days, Riyadh will become a meeting point for some of the biggest names in finance and fintech. Money20/20 Middle East returns from September 14 to 16, with more than 38,000 attendees, 600 investors, 350 speakers and 150 startups expected in Malham.

The line-up includes Tabby CEO Hosam Arab, Revolut GCC CEO Ambareen Musa, NALA founder Benjamin Fernandes and Lean Technologies CEO Hisham Al-Falih. Beyond the stages, much of the action will be around founders meeting investors, financial institutions and potential partners as Saudi Arabia builds its position as a regional fintech hub. Smashi Business is an official media partner and will be covering the event from Riyadh.

Israeli Air Force’s iPhone Duo Post Puts Apple’s Israel R&D Ties Back in Focus

🔹 What Is It About

The Israeli Air Force has used Apple’s newly unveiled iPhone Duo in an Instagram post featuring Israeli soldiers in Gaza. Carrying the line “This is Duo,” the post borrows Apple’s launch branding and displays military imagery across the foldable device. Apple introduced the Duo as its first foldable iPhone.

🔹 Why It Matters

The post has renewed attention on Apple’s longstanding R&D presence in Israel, including centres in Herzliya, Haifa and Jerusalem. Those operations have reportedly contributed to work spanning silicon, connectivity, cameras and sensing technology. Israeli Prime Minister Benjamin Netanyahu previously said anyone carrying a mobile phone was holding “a piece of Israel.”

🔹 What’s Next

There is no evidence Apple authorised the post or has a partnership with the Israeli Air Force. Attention will now be on whether Apple responds to the use of its product imagery, as scrutiny continues around the company’s Israeli technology ties amid the genocide in Gaza.

Anthropic Says Claude Was Used to Help Develop Weapons in Houthi-Controlled Yemen

🔹 What Is It About

Anthropic says actors operating in Houthi-controlled northern Yemen used Claude to help develop guided weapons, including a rocket, a ballistic missile designed to travel more than 2,000km, and a programme involving a proposed hypersonic glide vehicle. The company said the group used “Claude Code in place of human software engineers” for guidance and navigation work before Anthropic investigated and disrupted the activity.

🔹 Why It Matters

The case highlights the growing challenge AI companies face in preventing advanced models from being repurposed for military and geopolitical operations. Anthropic acknowledged that while its safeguards stopped many requests, “not all of them” were blocked, raising questions about how effectively frontier AI systems can control sophisticated misuse.

🔹 What’s Next

The disclosure comes as the Houthis expand their territorial control near the Bab Al Mandeb, a crucial global shipping route. Anthropic also alleges Iranian state-linked accounts used Claude for influence operations, adding another dimension to concerns over AI becoming embedded in modern conflict, from weapons engineering to information warfare.

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👨‍💻From Smashi Business’ Desk

  • Huda Kattan and Dubai’s DIME burger teamed up to launch the “Huda Meal”

  • Dubai's Original Ravi Restaurant has Distanced Itself From Other "Ravi" Eateries

  • A commercial tanker was struck by an unknown projectile in the Red Sea, 63 nautical miles west of Yanbu, Saudi Arabia

  • Dubai-born premium activewear brand SQUATWOLF has officially entered the Saudi Arabian retail market

  • Ryanair had something to say about Emirates’ new headrests… and the internet was ready

🔍In other news…

  • Houthis used Anthropic AI to try to build ballistic missiles

  • Iran and Gulf states to meet in push for Hormuz deal: FT

  • OpenAI Is Open to Slowing Cutting-Edge AI, CEO Sam Altman Tells Staff

  • Hormuz shipping traffic falls to single digits, data shows

🦄 World of Startups

  • ChatFeatured, Canada-based AI startup, raised $2M in a pre-seed funding round from BY Venture Partners (UAE/Lebanon) and other global investors

  • Doctorbook, Syria-based healthtech platform, raised $16K in a pre-seed funding round from a group of angel investors, valuing the startup at $200K

  • Carbar, Australia-based car subscription platform, is merging with Carasti, UAE-based car subscription business operating across the UAE, Saudi Arabia, Thailand, and Singapore, at a combined pre-raise valuation of $74M

  • Fincart, Egypt-based eCommerce enablement platform, raised $2.8M in a seed funding round

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