Saudi shuts Ras Tanura refinery after drone strike amid regional escalation

RIYADH: Saudi Arabia on Monday shut its largest domestic oil refinery following a drone strike, as escalating Israeli and US strikes and Iranian retaliation forced the closure of key energy facilities across the Middle East.

A wave of attacks entered its third consecutive day, prompting the precautionary suspension of most oil production in Iraqi Kurdistan and shutdowns at major Israeli gas fields, disrupting exports to Egypt.

State oil giant Saudi Aramco halted operations at its 550,000 barrels per day Ras Tanura refinery as a precautionary measure, according to a source. The facility forms part of a major energy complex on the kingdom’s Gulf coast and serves as a critical export terminal for Saudi crude oil.

In Iraqi Kurdistan, which exported around 200,000 barrels per day via pipeline to Turkiye’s Ceyhan port in February, companies including DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy have suspended output at their fields as a precaution, though no damage has been reported.

Offshore Israel, the Chevron-operated Leviathan gas field was shut on Saturday, while Energean halted operations at its production vessel serving smaller gas fields.

Drones intercepted

The situation at Ras Tanura was brought under control, the source said. Two drones were intercepted at the facility, with debris causing a limited fire, according to Saudi Arabia’s defence ministry spokesperson in comments to Al Arabiya TV. No injuries were reported.

Saudi state news agency SPA, citing an unnamed energy ministry official, said some refinery units were shut as a precaution but supplies of petroleum and its derivatives to local markets remain unaffected.

However, the shutdown is expected to heighten supply concerns, particularly as shipping through the Strait of Hormuz — a route handling around a fifth of global oil consumption — has slowed significantly following vessel attacks on Sunday.

Brent crude futures surged nearly 10% on Monday, climbing above $82 per barrel amid fears of prolonged disruptions.

Read More: Limited flights to resume in Dubai after days of Gulf airspace chaos

Escalation concerns

Analysts described the strike as a significant escalation. Torbjorn Soltvedt, principal Middle East analyst at risk intelligence firm Verisk Maplecroft, said the attack placed Gulf energy infrastructure directly in Iran’s crosshairs and could push Saudi Arabia and neighbouring states closer to joining US and Israeli military operations.

Saudi energy facilities have previously been targeted. In September 2019, drone and missile attacks on the Abqaiq and Khurais plants temporarily knocked out more than half of the kingdom’s crude production. Ras Tanura was also attacked in 2021 by Yemen’s Iran-aligned Houthi group.