Saudi Arabia’s state-owned oil company, Aramco, has temporarily closed its Ras Tanura refinery on Monday following an Iranian drone strike, Reuters reported citing an industry source.
Located on the kingdom’s Gulf coast, Ras Tanura hosts one of the Middle East’s largest refineries, with a capacity of 550,000 barrels per day, and serves as a vital crude export terminal. The attack raises concerns about potential wider disruptions to regional energy infrastructure.
Aramco has yet to release its official statement on the incident. Meanwhile, a spokesperson for Saudi Arabia’s defense ministry told Al Arabiya TV that two drones aimed at the Ras Tanura facility were successfully intercepted.
This attack on oil company comes at a time when global oil market already facing crunch, where crude prices have seen their sharpest four-year increase.
The escalating conflict with Iran has severely disrupted shipping through the Strait of Hormuz, which carries nearly 20% of the world’s daily oil supply. Although Tehran has not officially closed the passage, many shipowners have halted transits over security fears, effectively creating a bottleneck in this crucial energy route.
Energy markets are preparing for a prolonged period of volatility. Any future disruption to Gulf exports, especially if the Strait of Hormuz stays effectively blocked, could constrain supply just as global demand rises, potentially fueling renewed inflation worldwide. Brent crude surged 10% to around $80 a barrel in over-the-counter trading on Sunday.
Earlier, Saudi Arabia said it had successfully thwarted “cowardly” Iranian attacks on the area around its capital, Riyadh, and other eastern regions, condemning Tehran for the strikes even though Riyadh maintained it was not permitting its territory or airspace to be used in US or Israeli operations against Iran.
“The Kingdom of Saudi Arabia expresses its rejection and condemnation in the strongest terms of the blatant and cowardly Iranian attacks,” the Foreign Ministry said in a statement.
The conflict involving Iran escalated over the weekend after the United States and Israel conducted missile strikes on Iranian targets on Saturday, urging citizens to oppose the Islamic regime. In retaliation, Tehran launched attacks on Israel as well as US military bases and other targets in Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, and Bahrain.
Bureau Report
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