Saudi Aramco has temporarily shut down its Ras Tanura refinery as a precaution after the facility was struck by a drone, marking a significant escalation in the Iran conflict that now risks drawing in the wider Middle East. Following the development, crude oil prices jumped to $80 per barrel.
A spokesperson for the Saudi Defense Ministry told Al Arabiya TV that two drones were intercepted at the facility, with falling debris sparking a minor fire. The spokesperson added that no injuries were reported.
The closure of Saudi Aramco’s Ras Tanura refinery – one of the largest in the kingdom – is expected to intensify supply concerns as traffic through the Strait of Hormuz slows to a near standstill. At least three tankers have reportedly been attacked in the strategic waterway, which handles nearly one-fifth of the world’s daily crude oil shipments.
“The strike on Saudi Arabia’s Ras Tanura refinery represents a major escalation, with Gulf energy infrastructure now directly in Iran’s crosshairs,” Torbjorn Soltvedt, principal Middle East analyst at risk intelligence firm Verisk Maplecroft, told Reuters. “The incident is also likely to push Saudi Arabia and neighbouring Gulf states closer to participating in U.S. and Israeli military operations against Iran.”
Located on Saudi Arabia’s Gulf coast, the Ras Tanura complex is home to one of the Middle East’s largest refineries, with a processing capacity of around 550,000 barrels per day (bpd). It also functions as a key export terminal for Saudi crude oil.
Aramco did not immediately respond to an emailed request for comment.
The drone strike adds to a broader wave of attacks across the region, including incidents reported in Abu Dhabi, Dubai, Doha, Manama, and Oman’s commercial port of Duqm. In Iraq’s Kurdistan region, most oil production – which exported roughly 200,000 barrels per day to Turkey in February – was suspended over the weekend as a precautionary measure.
Saudi Arabia’s heavily fortified energy infrastructure has been targeted before, most notably in September 2019, when unprecedented drone and missile strikes on the Abqaiq and Khurais facilities temporarily knocked out more than half of the kingdom’s crude output and sent shockwaves through global markets.
Ras Tanura was previously targeted in 2021 by Yemen’s Iran-aligned Houthi rebels, in what Riyadh described at the time as an attempted attack on global energy security.
Crude Oil Prices
West Texas Intermediate (WTI), the benchmark light sweet crude produced in the United States, was trading at $72.79 per barrel early Monday – an 8.6% increase from around $67 on Friday, according to data from the CME Group.
Brent crude, the international benchmark, was priced at $79.41 per barrel early Monday, up 9% from $72.87 on Friday – which had already marked a seven-month high – according to FactSet.
Rising global energy prices are likely to translate into higher fuel costs for consumers, with gasoline prices at the pump expected to increase. Elevated oil prices may also push up the cost of groceries and other goods, adding pressure at a time when many households are already grappling with persistent inflation.