Saudi Aramco has shut down its Ras Tanura refinery as a precautionary measure after it was hit by a drone, Reuters reported on Monday, adding that the situation was under control. Prices of Brent crude oil surged to $80/barrel on the news.
Aramco’s media office did not have an immediate comment for Bloomberg.
Globally, crude oil prices have surged by the most in four years after an escalating Iran war virtually halted trade through the Strait of Hormuz — a waterway that carries nearly a fifth of world’s crude on a daily basis. While Iran hasn’t officially shut the channel, shipowners put in place a self-imposed pause amid the conflict.
The Iran war marks a dangerous new phase for the global oil market. The US and Israel fired missiles at targets across Iran on Saturday, while urging local people to overthrow the Islamic regime.
Tehran responded with a wave of strikes against Israel, as well as US bases and other targets in states including Saudi Arabia, Qatar, the United Arab Emirates, Kuwait and Bahrain. Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed.
This is a developing story. More to come.
