TLDR
- Shell’s Pearl gas-to-liquids plant in Qatar and the Samref refinery in Saudi Arabia, partially owned by Exxon, sustained damage from Iranian strikes
- Crude oil surged 3% to reach $109 per barrel with brief spikes touching $120
- QatarEnergy confirmed significant infrastructure damage at Ras Laffan LNG facilities
- President Trump issued threats against Iran’s South Pars Gas Field following attacks on Qatar’s LNG operations
- Energy infrastructure in Kuwait, UAE, and Saudi Arabia faced coordinated drone and missile attacks
A coordinated series of Iranian attacks targeted critical energy infrastructure throughout the Middle East in the last 24 hours, striking facilities with Shell and Exxon Mobil ownership stakes.
Oil prices climbed approximately 3% to reach $109 per barrel in response to the assaults. Markets witnessed temporary spikes to $120 before settling lower. Exxon shares gained 1.2% during Thursday trading, while Shell stock declined 0.6%.
The Samref refinery located in Yanbu, Saudi Arabia, was struck by a drone attack. This facility operates as a joint venture between Saudi Aramco and Exxon, with the American oil giant controlling a 50% ownership share. The refinery maintains processing capacity of 400,000 barrels daily.
Yanbu’s strategic Red Sea location has elevated its importance as an oil export hub. With Iran’s blockade of the Strait of Hormuz and ongoing attacks on Persian Gulf shipping, Saudi Arabia has increasingly relied on routing crude exports through the East West Pipeline to Yanbu terminals.
Rystad Energy’s analyst Aditya Saraswat cautioned that significant disruptions at Yanbu could eliminate 5 to 6 million barrels per day 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, and Exxon has yet to provide a response.
Shell’s Pearl Plant Hit in Qatar
Iranian missiles targeted Ras Laffan Industrial City in Qatar, where Shell operates the Pearl plant—the planet’s largest gas-to-liquids production facility. Shell confirmed a fire erupted at Pearl but was rapidly extinguished. The facility has been secured in “a safe state,” according to company statements, with zero casualties.
Shell indicated ongoing collaboration with Qatari officials and QatarEnergy to evaluate the extent of infrastructure damage.
QatarEnergy, ranking as the globe’s second-biggest LNG exporter, acknowledged “extensive damage” across its LNG processing operations at Ras Laffan. Fire suppression efforts successfully contained all blazes by Thursday morning, with no reported injuries.
Qatar’s annual LNG production reaches 77 million metric tons. Any prolonged disruption at Ras Laffan facilities could significantly impact worldwide natural gas availability.
Trump Warns Iran
President Donald Trump issued a stern warning via social media, cautioning 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 revealed that Israel had conducted strikes on South Pars without notifying either the United States or Qatar. Qatar’s foreign ministry responded by ordering the expulsion of Iran’s security and military attachés within a 24-hour window, characterizing the Ras Laffan assault as a “direct threat” to the nation’s security.
In Kuwait, drone strikes targeted two refining facilities—Mina al-Ahmadi and Mina Abdullah—igniting fires at both locations. The UAE implemented emergency shutdowns at Habshan gas facilities and the Bab oil field following missile interceptions. Neither country reported casualties.
Shell confirmed Thursday that damage assessment operations at the Pearl facility remain in progress.
