Key Highlights
- Shell’s Pearl gas-to-liquids complex in Qatar and the Samref refinery co-owned by Exxon in Saudi Arabia sustained damage from Iranian military strikes
- Crude oil prices surged 3% to reach $109 per barrel, with intraday spikes touching $120
- QatarEnergy disclosed significant damage to LNG processing infrastructure at the Ras Laffan industrial complex
- President Trump issued warnings to Tehran, threatening retaliation against Iran’s South Pars Gas Field if Qatari LNG operations face additional attacks
- Energy infrastructure across Kuwait, the UAE, and Saudi Arabia experienced drone and missile bombardment
Iran executed a coordinated series of strikes against energy installations throughout the Middle East in the last day, targeting operations with Shell and Exxon Mobil ownership stakes.
Oil prices climbed approximately 3% to $109 per barrel in response to the attacks. Markets witnessed a temporary surge to $120 before retreating. Exxon shares gained 1.2% during Thursday trading, whereas Shell declined 0.6%.
The Samref refinery in Yanbu, Saudi Arabia, was hit by a drone attack. Saudi Aramco and Exxon jointly operate this facility, with Exxon maintaining a 50% ownership position. The refinery has a daily processing capacity of 400,000 barrels.
Yanbu’s location along the Red Sea coast has elevated its strategic importance as an oil export hub. With Iran’s blockade of the Strait of Hormuz and ongoing attacks on vessels in the Persian Gulf, Saudi Arabia has shifted oil export routes through the East West Pipeline to Yanbu.
Rystad Energy’s analyst Aditya Saraswat cautioned that any significant disruption to Yanbu operations could eliminate 5 to 6 million barrels daily from global markets, potentially driving prices toward $150 or beyond.
Saudi defense systems successfully intercepted a ballistic missile targeting Yanbu. Damage assessment at the Samref refinery remains underway. Aramco has not issued a statement, and Exxon has yet to provide a response.
Qatar’s Pearl Facility Sustains Iranian Strike
Iranian missile strikes also impacted Ras Laffan Industrial City in Qatar, where Shell operates the Pearl plant—the globe’s largest gas-to-liquids facility. Shell confirmed that a fire erupted at Pearl but was rapidly extinguished. The company stated the facility is currently in “a safe state,” with zero casualties.
Shell indicated it is coordinating with Qatari officials and QatarEnergy to evaluate the full extent of damages.
QatarEnergy, ranked as the world’s second-largest liquefied natural gas exporter, acknowledged “extensive damage” to LNG processing units at Ras Laffan. All fires were contained by early Thursday morning, with no reported injuries.
Qatar’s annual LNG production reaches 77 million metric tons. Any prolonged disruption at Ras Laffan could create significant ripples throughout global gas markets.
White House Issues Warning to Tehran
President Donald Trump took to social media to warn Iran against additional strikes on Qatari LNG infrastructure. He threatened to “massively blow up the entirety of the South Pars Gas Field” should further attacks occur.
Trump revealed that Israel had conducted strikes on South Pars without prior notification to either the United States or Qatar. Qatar’s foreign ministry responded by expelling Iran’s security and military attaches within a 24-hour window and characterized the Ras Laffan assault as a “direct threat” to the nation’s security.
In Kuwait, drone strikes targeted two refineries—Mina al-Ahmadi and Mina Abdullah—igniting fires at both locations. The UAE placed the Habshan gas facilities and Bab oil field offline following missile interceptions. Both countries reported no casualties.
Shell continues damage assessment operations at the Pearl facility as of Thursday.
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