Saudi Aramco Shuts Ras Tanura Oil Refinery After Iran Drone Strike Escalates Gulf Tensions

Saudi Arabia’s state oil giant Saudi Aramco has shut down operations at its Ras Tanura oil refinery on March 2, 2026, after a reported drone strike triggered a fire at the facility, according to industry sources. The Ras Tanura complex, on the Saudi Gulf coast, is one of the kingdom’s largest refineries with about 550,000 barrels per day capacity and also functions as a key crude export terminal.

The shutdown was executed as a precautionary safety measure amid regional hostilities. The closure comes amid widening hostilities between Iran and a U.S.–Israel military coalition, including drone and missile strikes across Gulf states. Saudi air defenses reportedly intercepted multiple drones near the Ras Tanura area, with debris and fires reported on site though no immediate civilian casualties were confirmed. The situation reflects broader turmoil as Iran’s retaliation follows intense Western strikes, pushing tensions across the Middle East. Fears of supply disruption have already pushed global oil prices sharply higher, with Brent crude jumping above $80 per barrel, reflecting anxiety over energy exports from the Gulf region. Because Ras Tanura is central to Saudi Arabia’s oil export infrastructure, a prolonged shutdown could affect global energy markets, though authorities are still assessing broader impacts. Saudi Arabia has also escalated diplomatic pressure by summoning Iran’s ambassador over recent strikes, condemning violations of its sovereignty and warning of further defense measures.