Aramco halts loadings after drone debris sparks fire
Saudi Aramco shut its 550,000 barrel-per-day Ras Tanura refinery on Monday after falling debris from two intercepted Iranian drones triggered a fire at the facility on the Persian Gulf coast.
Saudi defense ministry spokesperson Turki al-Maliki told Al Arabiya that air defenses intercepted both drones at 7:04 a.m. local time. Emergency crews contained the blaze quickly, and no casualties were reported. Aramco said it halted some operational units "as a precautionary measure" and that local fuel supply would not be affected.
Ras Tanura is Saudi Arabia's biggest refinery
The complex sits on a peninsula jutting into the Persian Gulf near Dammam. It processes crude from major Saudi fields and serves as a key export hub for Asian and European buyers. Taking 550,000 bpd offline, even temporarily, removes roughly 5% of Saudi Arabia's total refining capacity from the market.
Part of a broader wave of Iranian strikes
The attack on Ras Tanura fits into a wider barrage launched by Tehran since Saturday, when US and Israeli forces struck targets inside Iran and killed Supreme Leader Ali Khamenei. Iran has since fired missiles and drones at targets in the UAE, Qatar, Bahrain, Kuwait and Saudi Arabia.
International airports in Dubai, Abu Dhabi and Kuwait sustained damage. At least three people died in the UAE. Qatar's foreign ministry said Monday that the strikes "cannot be left without retaliation."
Saudi authorities summoned Iranian ambassador Alireza Enayati over the incident.
Markets already on edge
Oil prices surged more than 8% when futures opened Sunday, with Brent touching $79.41 and WTI hitting $72.57. By Monday afternoon, Brent traded at $77.13 and WTI at $70.59, still well above last week's levels.
The refinery shutdown adds physical supply risk to a market already rattled by a 70% drop in tanker traffic through the Strait of Hormuz. Barclays analysts warned last week that Brent could hit $100 if Gulf disruptions persist.
Traders will watch closely for updates on how long Ras Tanura stays offline. Aramco has not given a timeline for restart.