TLDR
- Saudi Arabia closed the 550000 bpd Ras Tanura refinery after a drone strike.
- Israeli Leviathan gas field and other sites suspended production.
- Iraqi Kurdistan halted about 200000 bpd of oil output.
- Brent crude rose about 10 percent to above 82 dollars a barrel.
Saudi Arabia has shut down one of the world’s largest oil refineries, Ras Tanura, following an Iranian drone strike. The move comes as energy facilities across the Middle East suspend operations amid rising attacks.
The refinery closure follows a wave of Israeli and US strikes and Iranian retaliation in the region. Oil and gas production in Israel and Iraqi Kurdistan has also been halted as a precaution.
Drone Strike Forces Ras Tanura Shutdown
Saudi Aramco shut its 550000 barrels per day Ras Tanura refinery after drones targeted the facility. A source said the closure was a precautionary measure.
The Saudi defence ministry said two drones were intercepted at the site. Debris caused a limited fire, and there were no injuries reported.
State news agency SPA said some units were shut as a precaution. It added that local fuel supply was not affected. Aramco did not respond to requests for comment.
Ras Tanura is located on the Gulf coast. It is part of a large energy complex and export terminal. The site plays a central role in Saudi crude exports.
Shipping through the Strait of Hormuz has slowed sharply. Vessels were attacked near the waterway on Sunday. About one fifth of global oil passes through the strait.
Israeli Gas Fields and Kurdish Oil Output Halted
Offshore Israel, the Chevron operated Leviathan gas field was shut on Saturday. Sources confirmed the suspension amid security concerns.
Energean also halted production from its floating vessel. The vessel serves smaller gas fields in Israeli waters. These shutdowns have reduced gas exports to Egypt.
In Iraqi Kurdistan, most oil production has been stopped as a precaution. Companies reported no damage to their facilities.
The region exported about 200000 barrels per day through Turkey in February. Firms that halted output include DNO, Gulf Keystone Petroleum, Dana Gas, and HKN Energy.
The suspensions were described as temporary. Companies said they were monitoring the security situation closely.
Oil Prices Rise Amid Supply Concerns
Brent crude futures rose about 10 percent on Monday. Prices climbed above 82 dollars per barrel during trading.
Market activity reflected concern over supply disruptions. Traders reacted to refinery shutdowns and reduced shipping flows.
Torbjorn Soltvedt of Verisk Maplecroft said the attack marked an escalation. He said Gulf energy infrastructure was now in Iran’s sights.
He added that the strike could move Saudi Arabia and other Gulf states closer to US and Israeli military operations. Regional tensions remain high as exchanges continue.
Saudi energy facilities have been targeted before. In September 2019, drone and missile attacks struck the Abqaiq and Khurais plants. Those attacks temporarily knocked out more than half of the kingdom’s crude production.
Authorities said the current situation at Ras Tanura is under control. However, refinery operations remain suspended as security assessments continue.
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