Aramco has temporarily ceased operations at Saudi Arabia’s Ras Tanura oil refinery following a drone strike, marking an escalation in regional tensions as Iran intensifies its attacks.
The facility, a key supplier of diesel and other transport fuels, was shut down as a precautionary measure while damage assessments are conducted, according to the Saudi Energy Ministry, reported Bloomberg.
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The Saudi Press Agency reported that a “limited” fire broke out at the plant due to debris from the interception of two drones aimed at the facility, and that the blaze was “immediately contained”. The news agency reported that the incident did not result in any injuries or fatalities.
It added that Aramco had temporarily halted some refinery units as a precaution, while domestic supplies of petroleum products remained unaffected.
This halt in operations comes amid a wave of regional hostilities that began over the weekend.
The conflict intensified after strikes by the US and Israel killed Iran’s Supreme Leader, Ayatollah Ali Khamenei, triggering retaliatory strikes from Tehran involving missiles and drones across several countries.
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By GlobalDataThese events have caused significant disruption to key energy infrastructure including the majority of oil production in Iraq’s Kurdistan and several Israeli gas fields, impacting exports to Egypt.
The Ras Tanura refinery holds strategic importance as it processes 550,000 barrels of oil per day (bopd) and serves as a vital export hub for Saudi crude and oil products.
The refinery supplies diesel primarily to European markets and produces smaller quantities of gasoline.
Furthermore, Qatar’s state-owned QatarEnergy has halted its production of liquefied natural gas and related products. The decision follows military strikes on its operational facilities in Ras Laffan Industrial City and Mesaieed Industrial City in Qatar.
These developments have led to increased concerns about global energy supply stability.
In addition to Ras Tanura, explosions were reported on Iran’s Kharg Island, which manages approximately 90% of Iran’s crude exports, reported Reuters.
Ras Tanura was previously targeted in 2021 by Yemen’s Houthi movement aligned with Iran.
The closure of Ras Tanura is likely to intensify supply worries, as shipping through the Strait of Hormuz has nearly ground to a halt, impacting around 20% of global oil consumption.
The ongoing tensions in the Middle East have led to a build-up of oil tankers near the strait, a crucial passage for a significant share of the world’s seaborne oil and Qatari gas.
Global oil prices increased following Iranian strikes. Brent crude futures surged by up to 13% to $82.37 per barrel (bbl) at their peak on Monday, a level unseen since January 2025, before settling at $78.87/bbl by mid-morning (GMT), an increase of $6, or 8.2%.
This price surge followed reports that at least three vessels had been targeted near the Strait of Hormuz over the weekend amid continuing hostilities in Gulf waters.
