Saudi Aramco Shuts Ras Tanura Refinery After Iran Drone Strikes, Global Oil Supply at Risk

Saudi Arabia’s state oil giant, Saudi Aramco, has temporarily shut down its Ras Tanura refinery, one of the world’s largest with a capacity of 550,000 barrels per day, after a drone strike linked to Iran’s retaliatory actions in the Gulf. Located on the kingdom’s eastern coast, the refinery also serves as a major crude export hub, making its closure a critical disruption to global oil flows. Industry sources reported the precautionary shutdown to Reuters on Monday.

The drone strike at Ras Tanura coincides with a series of attacks across the Gulf, including in Abu Dhabi, Dubai, Doha, Manama, and Duqm in Oman, following U.S.-Israeli strikes on Iranian targets. These coordinated operations by Washington and Tel Aviv aimed to neutralize perceived imminent threats from Iran’s nuclear and missile programs. The attacks have heightened volatility in the region, pushing Brent crude futures up nearly 10% as markets react to potential supply disruptions.

The strikes have caused significant slowdowns in shipping activity around the Gulf and the Strait of Hormuz, a strategic chokepoint handling about a fifth of the world’s seaborne oil and LNG shipments daily. Tankers are rerouting or delaying entry amid security warnings, raising concerns over the stability of energy supply chains. Countries including Japan and Greece have advised their fleets to reconsider transiting the strait, highlighting the global ripple effects of the regional conflict.

Beyond oil and shipping, the escalating hostilities are affecting civilians and infrastructure across the Gulf. Saudi Arabia reported repelling attacks in Riyadh and its eastern region, while Israel imposed security restrictions, closed schools, and relocated hospital patients underground. The strikes underscore the human cost of regional tensions, reminding the world that geopolitical conflicts can disrupt daily life and trade far beyond immediate military targets.

International bodies and regional authorities have urged restraint to prevent further escalation. ECOWAS, through Chairman Julius Maada Bio, warned that continued hostilities could disrupt global trade, energy security, and food supplies. While Iran confirmed its retaliatory strikes on U.S. assets in several Gulf nations, authorities stressed that the situation remains volatile. Global energy markets are closely monitoring developments, as the Ras Tanura shutdown demonstrates how swiftly regional conflict can impact worldwide oil supply.

source: nairametrics