TLDR
- Shell’s Pearl facility in Qatar and the Samref refinery in Saudi Arabia, partially owned by Exxon, suffered damage from Iranian strikes
- Crude prices surged 3% to reach $109 per barrel, with temporary spikes touching $120
- QatarEnergy confirmed significant infrastructure damage to LNG processing units at Ras Laffan
- President Trump issued warnings to Iran, threatening retaliation against South Pars Gas Field for any future attacks on Qatar’s LNG operations
- Energy infrastructure in Kuwait, UAE, and Saudi Arabia also sustained drone and missile attacks
A coordinated series of Iranian strikes targeted major energy installations throughout the Middle East in the last day, damaging critical infrastructure operated by energy majors Shell and Exxon Mobil.
Oil prices climbed approximately 3% to reach $109 per barrel in response to the attacks. Markets witnessed a temporary surge to $120 before stabilizing. Exxon shares gained 1.2% in Thursday trading, while Shell experienced a 0.6% decline.
The Samref refinery in Yanbu, Saudi Arabia, was struck by a drone attack. This refinery operates as a joint venture between Saudi Aramco and Exxon, with the American energy giant maintaining a 50% ownership stake. The facility has the capacity to refine 400,000 barrels of crude daily.
Located along the Red Sea coast, Yanbu has emerged as a vital hub for Saudi oil exports. With Iran’s blockade of the Strait of Hormuz and ongoing attacks on vessels in the Persian Gulf, Saudi Arabia has increasingly relied on the East West Pipeline to transport crude to Yanbu for export.
Rystad Energy’s analyst Aditya Saraswat cautioned that any significant disruption to Yanbu operations could eliminate 5 to 6 million barrels per day from global markets, potentially driving prices to $150 or beyond.
Saudi defense systems successfully intercepted a ballistic missile targeting Yanbu. Damage evaluation at the Samref refinery continues. Aramco refused to provide statements, while Exxon has yet to respond to inquiries.
Qatar’s Pearl Facility Sustains Damage
Iranian missiles also targeted Ras Laffan Industrial City in Qatar, the location of Shell’s Pearl plant—the world’s premier gas-to-liquids production facility. Shell confirmed a fire erupted at Pearl but was rapidly extinguished. According to the company, the facility is currently in “a safe state,” with zero casualties.
Shell stated it is collaborating with Qatari officials and QatarEnergy to evaluate the full extent of the damage.
QatarEnergy, ranking as the globe’s second-largest LNG exporter, acknowledged “extensive damage” to its LNG processing infrastructure at Ras Laffan. All blazes were contained by early Thursday morning, with no reported injuries.
Qatar’s annual LNG output stands at 77 million metric tons. Any prolonged disruption at Ras Laffan could significantly impact worldwide gas availability.
Presidential Warning Issued to Tehran
President Donald Trump issued a response via social media, cautioning Iran against additional strikes on Qatar’s LNG infrastructure. He threatened to “massively blow up the entirety of the South Pars Gas Field” should further attacks occur.
Trump revealed that Israel previously struck South Pars without coordinating with either the United States or Qatar. Qatar’s foreign ministry responded by expelling Iran’s security and military attaches within a 24-hour timeframe, characterizing the Ras Laffan assault as a “direct threat” to the nation’s security.
In Kuwait, drone strikes targeted the Mina al-Ahmadi and Mina Abdullah refineries, igniting fires at both locations. The UAE took protective measures by shutting down the Habshan gas facilities and the Bab oil field following missile interceptions. Both countries reported zero casualties.
Shell indicated that damage assessment operations at the Pearl facility remain in progress as of Thursday.
