Saudi Arabia’s state oil giant Saudi Aramco closed its Ras Tanura refinery on Monday following an Iranian drone strike, an industry source told Reuters as Tehran retaliated across the Gulf after a U.S.-Israeli attack on Iranian targets over the weekend.
Ras Tanura, on the kingdom’s eastern coast along the Gulf, is one of the largest refining complexes in the Middle East. It can process about 550,000 barrels of crude oil a day and also functions as a key export terminal for Saudi oil.
Reports said the strike sparked a fire at the site, with videos circulating online appearing to show smoke rising from the facility. Workers at Aramco installations were evacuated as a precaution amid fears of further attacks.
Oil markets reacted sharply. Brent crude climbed by about 10% on Monday as tensions escalated across the region.
Saudi officials said the situation at Ras Tanura had been brought under control. The defence ministry said two drones were intercepted, with falling debris causing a limited blaze. No injuries were reported.
Some processing units were taken offline as a safety measure, but supplies to domestic fuel markets have not been disrupted, according to the Saudi state news agency, which cited an energy ministry official. Aramco did not immediately respond to requests for comment.
The closure is expected to heighten concerns over global supply, particularly as shipping through the Strait of Hormuz - a route that carries roughly a fifth of the world’s oil consumption - has slowed dramatically following attacks on vessels nearby.
Iranian strikes have reportedly hit targets across the Gulf, including in the United Arab Emirates and Oman, disrupting key shipping hubs. Several countries in the region, among them Bahrain, Qatar and Kuwait, have also been affected.
The escalation follows strikes carried out by the U.S. and Israel on Iran on Saturday, which reportedly killed several senior figures.
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