RIYADH – Saudi Aramco has halted operations at its major Ras Tanura refinery following a fire that erupted after a reported Iranian drone strike.
The attack led to a temporary suspension of loadings at the refinery, which processes 550,000 barrels of oil per day.
Aramco has not yet provided a comment on the incident, but reports from Bloomberg and Reuters indicate that the shutdown occurred amid a broader wave of drone and missile attacks launched by Iran on its Gulf neighbors.
Ras Tanura, situated along the Gulf coast, is home to one of the largest oil export terminals in the world, as well as a significant refining operation.
Saudi Arabia’s Ministry of Defence has confirmed the development.
This attack on Ras Tanura would represent the first Iranian strike targeting the Gulf’s energy infrastructure.
Meanwhile, Brent crude touched new heights, reminding the world that in today’s economy, conflict and commerce often move in the same breath.
The world’s energy markets were thrown into upheaval as oil prices rocketed at the start of trading on Sunday, fueled by war between US, Israel and Iran. Investors and energy experts warned that growing geopolitical instability could disrupt oil supplies and send fuel prices spiraling higher.
Traders reacted swiftly, betting that crude exports from the Middle East could slow, if tensions continue. Recent attacks on vessels in the vital shipping lanes of the Strait of Hormuz, a narrow and strategically critical waterway in the Persian Gulf, have intensified fears of supply disruptions. Nearly one-fifth of the world’s oil flows through this chokepoint, making it a cornerstone of global energy trade. Any restrictions on shipping could restrict access to crude and trigger sharp price hikes for consumers worldwide.
Benchmark crude, West Texas Intermediate, surged to around $72 per barrel on Sunday night with an 8% leap from Friday’s trading level of roughly $67. Energy analysts cautioned that if exports from the region are hampered, higher gasoline and fuel costs could follow as global supply tightens.
