Oil and gas facilities shut across Gulf as Iran conflict escalates

Oil and gas facilities across the Gulf have been shut down or suspended following US and Israeli strikes on Tehran, fuelling concerns over energy security and pushing global crude prices higher.

A source in the oil sector said Saudi Aramco temporarily closed the Ras Tanura refinery — one of the largest in the Middle East, with a capacity of around 550,000 barrels per day — after it was targeted by a drone.

Saudi Arabia’s Ministry of Defence confirmed that two drones were intercepted over the facility, adding that falling debris caused a minor fire but no injuries. The Ministry of Energy stated that domestic fuel supplies were not affected.

In the Kurdistan Region of Iraq, energy companies including DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy halted most production as a precaution, although no direct damage was reported. The region exported approximately 200,000 barrels per day in February via a pipeline to the Turkish port of Ceyhan.

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In Israel, the government instructed Chevron to temporarily shut down the offshore Leviathan gas field, a cornerstone of Israel’s gas exports to Egypt. Energean also suspended operations of a production vessel servicing smaller offshore fields.

Meanwhile, explosions were reported on Iran’s Kharg Island, the terminal through which roughly 90 per cent of Iranian crude exports pass. The extent of any damage remains unclear. Iran, OPEC’s third-largest producer, pumps around 3.3 million barrels per day of crude, in addition to approximately 1.3 million barrels per day of condensate and other liquids — representing about 4.5 per cent of global supply.

The disruption has heightened fears over the stability of energy flows through the Strait of Hormuz, a vital maritime chokepoint for global oil trade, as regional tensions continue to intensify.

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