Key Points
- Shell’s Pearl gas-to-liquids facility in Qatar and the Exxon-backed Samref refinery in Saudi Arabia sustained damage from Iranian strikes
- Crude oil markets reacted with a 3% surge to $109 per barrel, momentarily touching $120
- QatarEnergy disclosed “extensive damage” to 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, the UAE, and Saudi Arabia also came under drone and missile assault
A coordinated Iranian offensive targeting energy infrastructure throughout the Middle East unfolded in the last 24 hours, impacting major facilities with Shell and Exxon Mobil ownership stakes.
Oil prices climbed approximately 3% to reach $109 per barrel in the aftermath of the attacks. Markets witnessed a temporary surge to $120 before prices retreated. Trading saw Exxon shares gain 1.2% on Thursday, while Shell experienced a 0.6% decline.
The Samref refinery complex in Yanbu, Saudi Arabia, took a direct hit from a drone strike. Exxon maintains a 50% ownership share in this facility alongside Saudi Aramco. The refinery’s processing capacity stands at 400,000 barrels of crude daily.
Yanbu’s strategic importance has grown significantly as a Red Sea oil export hub. With Iran maintaining a blockade of the Strait of Hormuz and targeting vessels in the Persian Gulf, Saudi Arabia has redirected oil shipments through the East West Pipeline to Yanbu’s terminals.
Rystad Energy’s analyst Aditya Saraswat cautioned that any significant disruption to Yanbu operations could eliminate 5 to 6 million barrels daily from global supply, with potential price escalation to $150 or beyond.
Saudi defense systems successfully intercepted a ballistic missile targeting Yanbu. Officials continue evaluating the full scope of damage at the Samref complex. Aramco has not issued a statement, and Exxon has yet to provide a response.
Qatar’s Pearl Facility Sustains Iranian Attack
Iranian ballistic missiles targeted Ras Laffan Industrial City in Qatar, where Shell operates the Pearl plant — the planet’s most expansive gas-to-liquids production facility. Shell confirmed a fire ignited at Pearl but emergency crews extinguished it rapidly. The facility has been secured in “a safe state,” according to the company’s statement, with zero casualties.
Shell representatives indicated ongoing collaboration with Qatari government officials and QatarEnergy to determine the full extent of infrastructure damage.
QatarEnergy, ranking as the globe’s second-largest LNG producer, acknowledged “extensive damage” across its LNG processing operations at Ras Laffan. Fire suppression teams controlled all blazes by early Thursday morning, with no reported injuries.
Qatar’s annual LNG output reaches 77 million metric tons. Any prolonged disruption at Ras Laffan carries implications for worldwide natural gas availability.
Presidential Warning to Tehran
President Donald Trump took to social media with a stern warning to Iran against additional strikes on Qatari LNG infrastructure. He vowed to “massively blow up the entirety of the South Pars Gas Field” should further attacks occur.
Trump disclosed that Israel conducted strikes on South Pars without prior notification to the United States or Qatar. Qatar’s foreign ministry responded by ordering Iran’s security and military attaches to leave within 24 hours, characterizing the Ras Laffan assault as a “direct threat” to the nation’s security.
Kuwait reported drone strikes against two refinery complexes — Mina al-Ahmadi and Mina Abdullah — sparking fires at both locations. The UAE implemented emergency shutdowns at the Habshan gas processing facilities and the Bab oil field following successful missile interception. Both countries reported zero casualties.
Shell confirmed Thursday that damage evaluation at the Pearl plant remains in progress.
