Saudi Arabia’s state oil company Aramco has halted operations at the Ras Tanura oil refinery and export terminal, one of the world’s largest crude processing facilities, following a reported Iranian drone strike that underscored spiralling tensions in the Middle East, multiple international news agencies report.

The shutdown was announced on Monday March 2, 2026 after the 550,000 barrels-per-day (bpd) facility on the Persian Gulf coast was affected by what industry and defence sources described as a drone attack linked to ongoing regional military actions. The strike caused a limited blaze and prompted precautionary suspension of refining operations to ensure safety and assess potential damage.

Ras Tanura plays a vital role in global oil supply, serving as a major output centre and export hub for Saudi crude to Asia and Europe. The facility’s temporary closure represents a significant disruption to Saudi production and comes amid broader conflict involving United States and Israeli strikes on Iranian targets with subsequent Iranian responses across the region.

Saudi defence authorities reported that intercepted drones were involved in the incident, and although casualties were not confirmed the halt at Ras Tanura reflects heightened concerns over the security of energy infrastructure in the Gulf. The situation has also contributed to market volatility with oil prices rising sharply in trading following the developments.

Industry analysts say the refinery’s suspension could have knock-on effects for global markets, as even a temporary cutoff at one of the world’s largest facilities tightens supply outlooks already pressured by geopolitical uncertainty, particularly if rival producers and shipping routes near the Strait of Hormuz are affected.

Saudi officials have said measures are being taken to stabilise output and that the priority is to safely restart operations once assessments and necessary repairs are completed, though no clear timetable has been released. The closure further elevates concerns about energy security and highlights the vulnerability of critical infrastructure during ongoing regional hostilities.