Drone Strikes and Geopolitical Tensions Hit Middle East Oil Production

Saudi Arabia has temporarily closed its largest domestic oil refinery, Ras Tanura, following a drone strike amid a series of escalating conflicts across the Middle East. These tensions have triggered shutdowns at oil and gas facilities in the region, which is impacting global oil supply and causing a 13% increase in prices.

Iraqi Kurdistan has halted oil production as companies took preemptive measures to safeguard their facilities, though no damage has been reported. Similarly, in Israel, Chevron has suspended operations at several offshore gas fields as instructed by the government. Iran also reported explosions on Kharg Island, a crucial site for its oil exports.

Energean and Chevron have paused operations in response to the ongoing attacks, with Iran and Qatar also reporting assaults on their energy infrastructure. Saudi authorities confirmed two drones were intercepted at Ras Tanura, causing a limited fire but no injuries, highlighting the growing threats to the Gulf's vital energy sector.