Key Takeaways
- Shell’s Pearl gas-to-liquids facility in Qatar and the Exxon-owned Samref refinery in Saudi Arabia sustained damage from Iranian military strikes
- Crude oil prices surged 3% to reach $109 per barrel, with brief spikes touching $120
- QatarEnergy disclosed “extensive damage” across its liquefied natural gas infrastructure at Ras Laffan
- President Trump issued warnings to Iran, threatening retaliation against the South Pars Gas Field if Qatari LNG facilities face further attacks
- Energy infrastructure in Kuwait, UAE, and Saudi Arabia also suffered drone and missile bombardment
Iran executed a coordinated series of strikes targeting energy infrastructure throughout the Middle East in the last 24 hours, damaging facilities operated by major international oil companies Shell and Exxon Mobil.
Oil prices climbed approximately 3% to $109 per barrel in response to the attacks. Markets witnessed a temporary spike to $120 before prices retreated. Exxon shares gained 1.2% during Thursday trading, while Shell experienced a 0.6% decline.
The Samref refinery located in Yanbu, Saudi Arabia, was hit by a drone attack. This facility operates as a joint venture between Saudi Aramco and Exxon, with the American energy giant maintaining a 50% ownership position. The refinery processes up to 400,000 barrels of crude daily.
Yanbu’s strategic location on the Red Sea has elevated its importance as a crucial oil export hub. With Iran’s blockade of the Strait of Hormuz and ongoing attacks on vessels in the Persian Gulf, Saudi Arabia has shifted oil exports through the East West Pipeline to Yanbu.
Rystad Energy’s analyst Aditya Saraswat cautioned that any significant disruption at Yanbu could eliminate 5 to 6 million barrels per day from global supply, potentially driving oil prices to $150 or beyond.
Saudi defense systems successfully intercepted a ballistic missile directed at Yanbu. Damage assessment at the Samref refinery remains underway. Aramco has declined comment, while Exxon has not yet issued a response.
Qatar’s Pearl Facility Sustains Iranian Strike
Iranian missiles targeted Ras Laffan Industrial City in Qatar, striking the world’s premier gas-to-liquids complex — Shell’s Pearl facility. Shell confirmed a fire erupted at Pearl but was rapidly contained. The facility has been secured in “a safe state,” according to company statements, with zero casualties.
Shell confirmed it is collaborating with Qatari officials and QatarEnergy to determine the full scope of damage.
QatarEnergy, ranking as the planet’s second-largest LNG exporter, acknowledged “extensive damage” across its LNG processing operations at Ras Laffan. All fires were extinguished by early Thursday morning, with no reported injuries.
Qatar’s annual LNG production reaches 77 million metric tons. Any prolonged disruption at Ras Laffan could trigger significant global gas supply constraints.
Presidential Warning to Tehran
President Donald Trump issued a response via social media, cautioning Iran against additional strikes on Qatari LNG infrastructure. He warned of plans to “massively blow up the entirety of the South Pars Gas Field” if attacks continue.
Trump revealed that Israel conducted strikes on South Pars without prior notification to the United States or Qatar. Qatar’s foreign ministry responded by ordering the expulsion of Iran’s security and military attaches within 24 hours, characterizing the Ras Laffan assault as a “direct threat” to the nation’s security.
In Kuwait, drone strikes targeted two refineries — Mina al-Ahmadi and Mina Abdullah — igniting fires at both locations. The UAE implemented emergency shutdowns at the Habshan gas facilities and the Bab oil field following missile interceptions. Both countries reported zero casualties.
Shell indicated that damage evaluation at the Pearl facility continues as of Thursday.
