Saudi Arabia shuts down one of the world’s largest oil refineries, Ras Tanura, following Iranian drone strike.

On March 2, 2026, Saudi Arabia temporarily shut down the Ras Tanura refinery, one of the world’s largest oil processing facilities, after a reported Iranian drone strike triggered a limited fire and prompted precautionary evacuations.

The Ras Tanura complex, operated by state-owned Saudi Aramco, has a capacity of 550,000 barrels per day and serves as both a major domestic refinery and a critical export terminal for crude oil along the Persian Gulf coast. Saudi authorities stated that defense systems intercepted two drones targeting the site, with falling debris causing a contained blaze and no reported injuries. Officials emphasized that the situation remained under control and that local petroleum supplies faced no immediate disruption.

The incident unfolded amid a broader wave of retaliatory strikes across the Middle East, following recent US and Israeli military actions against Iran. Reports indicate Iran launched attacks on various regional targets, though Tehran has denied direct responsibility for strikes on Saudi energy infrastructure. Social media footage showed thick smoke rising from the area as workers evacuated, heightening concerns over potential escalation.

This event echoes the 2019 attack on Saudi facilities at Abqaiq and Khurais, which briefly halved the kingdom’s output and underscored the vulnerability of Gulf energy assets. Analysts view the Ras Tanura incident as a significant development, drawing Gulf oil infrastructure directly into the crossfire and raising fears of wider supply chain risks near the Strait of Hormuz.

Global oil markets reacted sharply, with Brent crude prices surging between 7 and 10 percent in early trading as traders assessed possible longer-term disruptions. The shutdown adds pressure to an already tense energy landscape, where additional incidents in Qatar, Israel, and other locations have compounded supply worries.

Saudi officials have begun damage assessments, with operations halted as a safety measure while the full extent of any impact is evaluated. The episode highlights the fragile intersection of geopolitics and global energy security in the current regional conflict.