Key Highlights
- Shell’s Pearl gas-to-liquids facility in Qatar and Saudi Arabia’s Samref refinery (50% Exxon-owned) sustained damage from Iranian military operations
- Crude oil prices surged 3% to reach $109 per barrel, with intraday peaks touching $120
- QatarEnergy confirmed significant damage to LNG infrastructure at the Ras Laffan complex
- President Trump issued warnings to Tehran, threatening retaliation against Iran’s South Pars Gas Field
- Energy infrastructure in Kuwait, UAE, and Saudi Arabia faced additional drone and missile attacks
Iranian forces conducted coordinated strikes against multiple energy installations throughout the Middle East in a 24-hour period, targeting facilities operated or partially owned by major oil companies Shell and Exxon Mobil.
Oil prices climbed approximately 3% to reach $109 per barrel in response to the attacks. Market volatility saw prices temporarily surge to $120 before settling lower. Exxon shares gained 1.2% in Thursday trading, contrasting with Shell’s 0.6% decline.
The Samref refining complex 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 company maintaining a 50% ownership position. The refinery’s processing capacity stands at 400,000 barrels daily.
Yanbu’s strategic location on the Red Sea coast has elevated its importance as an oil export hub. With Iran maintaining a blockade of the Strait of Hormuz and conducting operations against vessels in the Persian Gulf, Saudi Arabia has increasingly relied on the East West Pipeline to redirect crude shipments through Yanbu.
Rystad Energy’s analyst Aditya Saraswat cautioned that any significant disruption to Yanbu operations could eliminate 5 to 6 million barrels daily from global markets, potentially driving prices toward $150 or beyond.
Saudi defense systems successfully intercepted a ballistic missile targeting Yanbu. Officials continue evaluating the full scope of damage at the Samref facility. Aramco has not issued comments, while Exxon has yet to provide a response.
Qatar’s Pearl Facility Sustains Iranian Strike
Iranian missiles targeted Ras Laffan Industrial City in Qatar, where Shell operates the Pearl plant—the planet’s most advanced gas-to-liquids conversion facility. Shell confirmed that a fire ignited at Pearl following the strike but was rapidly extinguished. The company stated the facility has been secured in a “safe state,” with zero casualties.
Shell indicated it is collaborating with Qatar’s government and QatarEnergy to determine the full extent of the damage.
QatarEnergy, ranking as the world’s second-largest liquefied natural gas exporter, acknowledged “extensive damage” to its LNG processing operations at Ras Laffan. All fires were successfully contained by early Thursday morning, with no reported injuries.
Qatar’s annual LNG output totals 77 million metric tons. Any prolonged disruption at Ras Laffan could significantly impact worldwide natural gas availability.
Presidential Warning to Tehran
President Donald Trump took to social media to warn Iran against additional strikes on Qatar’s LNG infrastructure. He threatened to “massively blow up the entirety of the South Pars Gas Field” should further attacks occur.
Trump revealed that Israel had previously struck South Pars without coordinating with either the United States or Qatar. Qatar’s foreign ministry ordered Iran’s security and military attachés to leave the country within 24 hours and characterized the Ras Laffan assault as a “direct threat” to the nation’s security.
In Kuwait, drone attacks targeted the Mina al-Ahmadi and Mina Abdullah refineries, igniting fires at both locations. The UAE responded to missile threats by shutting down the Habshan gas processing facilities and the Bab oil field following successful interceptions. Both nations reported no casualties.
Shell confirmed damage assessment operations at the Pearl facility remained ongoing as of Thursday.
