According to an industry source on Monday, Saudi Arabia’s national oil company, Aramco, has halted operations at its Ras Tanura refinery following a drone attack that ignited a fire, coinciding with Tehran’s retaliatory strikes across the region in response to the US-Israeli offensive against Iran.
Videos shared on social media claiming to depict the facility following the attack revealed flames and a dense plume of black smoke rising into the atmosphere.
Drone Attack on Refinery
A spokesperson for the Saudi defense ministry reported that two drones targeted the Aramco refinery, the largest in Saudi Arabia and among the biggest globally, but were intercepted, as stated in a release by the Saudi Press Agency on X.
“The interception operation led to a minor fire caused by falling shrapnel, but there were no civilian injuries,” the spokesperson stated.
An insider acquainted with the situation informed AFP that the fire had already been put out.
Fire at Ras Tanura
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Located on the Gulf coast of the kingdom, the Ras Tanura facility is home to one of the largest refineries in the Middle East, boasting a daily capacity of 550,000 barrels (bpd) and functioning as a vital export hub for Saudi crude oil.
The source indicated that it was closed as a safety precaution, and the situation is currently managed.
Saudi Defense Response
???????????????? A different perspective on Saudi Arabia’s Aramco oil facility after Iranian influence: pic.twitter.com/erBJkRPDLj Announcement — BRICS News (@BRICSinfo) March 2, 2026
Aramco has yet to reply to an email inquiry seeking their comments.
On Sunday, Saudi Arabia successfully intercepted Iranian missiles aimed at Riyadh’s international airport and the Prince Sultan Airbase, which accommodates US military personnel, according to a Gulf source who spoke to AFP. The foreign ministry of Saudi Arabia announced that it had summoned the Iranian ambassador.
Impact on Oil Operations
Saudi Arabia’s heavily secured energy installations have faced attacks in the past, most notably in September 2019 when unprecedented drone and missile strikes on the Abqaiq and Khurais facilities temporarily disrupted over half of the nation’s crude output, causing turmoil in global markets. While the Iran-aligned Houthi rebel faction in Yemen took credit for the assault, the United States attributed the attack directly to Iran.
The recent drone attack has contributed to a series of assaults across the Gulf region, impacting cities such as Abu Dhabi, Dubai, Doha, Manama, and the commercial area of Duqm in Oman. These strikes have disrupted key shipping centers in the United Arab Emirates and Oman, causing Brent crude futures LCOc1 to spike by approximately 10 percent on Monday.
Traders anticipated that oil supplies from Iran and other Middle Eastern nations would diminish or potentially cease altogether. Incidents in the area, including assaults on two ships navigating the Strait of Hormuz, the narrow entrance to the Persian Gulf, have hindered nations’ capacity to ship oil globally. Extended assaults could likely lead to increased costs for crude oil and gasoline, as per energy analysts.
Promotion
West Texas Intermediate, the light and sweet crude oil sourced from the United States, was priced at approximately $72 per barrel early Monday, reflecting an increase of around 7.3% from roughly $67 on Friday, based on information from CME Group.
Early Monday, a barrel of Brent crude, recognized as the global benchmark, was priced at $78.55, reflecting a 7.8% increase from its previous trading value of $72.87 on Friday, which had marked a seven-month peak at that time, as reported by FactSet.
Rising global energy costs may force consumers to spend more on gasoline at the pump and to pay higher prices for groceries and other items, especially as many are already grappling with the impacts of persistent inflation.
Approximately 15 million barrels of crude oil are transported daily through the Strait of Hormuz, accounting for around 20% of global oil shipments, as reported by Rystad Energy. The tankers navigating this strait, which is flanked to the north by Iran, transport oil and gas from countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE, and Iran.
In mid-February, Iran temporarily closed sections of the strait, citing a military exercise, which resulted in a roughly 6% increase in oil prices in the subsequent days.
In light of recent events, eight nations within the OPEC+ oil alliance declared on Sunday their intention to increase crude oil production. Prior to the onset of the conflict, the Organization of Petroleum Exporting Countries had announced a production rise of 206,000 barrels per day for April, surpassing analysts’ forecasts. The nations increasing their output include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
“Approximately 20% of the world’s oil supply transits through the Strait of Hormuz, a crucial channel for international trade, which means that markets are more focused on the ability to transport barrels than on theoretical spare capacity,” stated Jorge León, Rystad’s senior vice president and head of geopolitical analysis, in an email. “If the flow through the Gulf is restricted, any increase in production will offer minimal immediate assistance, making the availability of export routes significantly more critical than the stated output goals.”
Iran is currently exporting approximately 1.6 million barrels of oil daily, primarily to China, which might need to seek alternative sources for supply if Iran’s shipments face interruptions, a situation that could further drive up energy costs.
