BAGHDAD -- Iraq’s government was racing Saturday to contain the fallout after local Iran-backed militias were accused of attacking and shuttering a key Saudi pipeline. Though an umbrella group of Iran-backed militias in Iraq denied their involvement, Iraq's government confirmed the attacks had originated from its territory. The government pledged to investigate and dismissed a military commander.The country is under mounting pressure to prevent local militias from aiding other Iran proxy groups across the region. It's especially acute as the Iran-backed Houthi rebels make an advance across Yemen’s west coast in a major setback to the Saudi-backed coalition that risks escalating the war in the region.The Houthis on Friday seized an island in the Bab el-Mandeb Strait, a key shipping lane through which around 12% of global trade passes.Their virtual control of the strait could send global oil prices — already inflated by the six-month Iran-U.S. war — spiraling. The strait has become a vital commercial lane for Saudi oil ever since the Iran war disrupted shipping in the Strait of Hormuz. The Iraqi government has set a Sept. 30 deadline for nonstate groups to disarm, but several of the ...

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