Saudi Arabia's state oil giant Aramco shut its Ras Tanura refinery following a drone strike, an industry source said on Monday, after Tehran launched strikes across the region in response to the US-Israeli attack on Iran.
The Ras Tanura complex, on the kingdom's Gulf coast, houses one of the Middle East's largest refineries with a capacity of 550,000 barrels per day (bpd) and serves as a critical export terminal for Saudi crude oil.
Ras Tanura was shut as a precautionary measure, and the situation is under control, the source said. Two drones were intercepted at the facility, with debris causing a limited fire, the Saudi defense ministry's spokesperson said on Al Arabiya TV, adding there were no injuries.
Its shuttering will likely add to supply anxieties as shipping through the Strait of Hormuz, through which around a fifth of global oil consumption flows, grinds to a near-halt after vessels were attacked around it on Sunday. Brent crude futures surged roughly 10% on Monday.
"The attack on Saudi Arabia’s Ras Tanura refinery marks a significant escalation, with Gulf energy infrastructure now squarely in Iran’s sights," said Torbjorn Soltvedt, Principal Middle East Analyst at risk intelligence firm Verisk Maplecroft.
"The attack is also likely to move Saudi Arabia and neighboring Gulf states closer to joining US and Israeli military operations against Iran."
Aramco did not immediately respond to an emailed request for comment.
Wave of attacks on the Gulf
The drone strike added to a wave of attacks on the Gulf, including on Abu Dhabi, Dubai, Doha, Manama, and Oman's commercial part of Duqm. The strikes have paralyzed major shipping hubs in the United Arab Emirates and Oman and sent Brent crude futures surging roughly 10% on Monday.
Saudi Arabia's heavily fortified energy facilities have been targeted previously, most notably in September 2019 when unprecedented drone and missile attacks on the Abqaiq and Khurais plants temporarily knocked out more than half of the kingdom's crude production and roiled global markets.