Key Developments
- Shell’s Pearl gas-to-liquids facility in Qatar and the Samref refinery in Saudi Arabia, co-owned by Exxon, sustained damage from Iranian attacks
- Crude prices climbed 3% to reach $109 per barrel, with intraday peaks touching $120
- QatarEnergy confirmed significant damage to LNG processing infrastructure at Ras Laffan
- President Trump issued warnings to Iran regarding potential retaliation if attacks on Qatari LNG continue
- Energy infrastructure in Kuwait, UAE, and Saudi Arabia faced drone and missile attacks
A coordinated series of Iranian military strikes targeted energy infrastructure throughout the Middle East during the past day, inflicting damage on facilities operated by Shell and Exxon Mobil.
Oil prices experienced an approximately 3% increase, reaching $109 per barrel in the aftermath of these attacks. Markets witnessed a temporary surge to $120 before settling back. Exxon shares gained 1.2% during Thursday trading, whereas Shell experienced a 0.6% decline.
The Samref refinery in Yanbu, Saudi Arabia, was hit by a drone attack. Saudi Aramco and Exxon jointly operate this facility, with Exxon maintaining a 50% ownership position. The refinery has the capacity to process 400,000 barrels daily.
Located along the Red Sea coast, Yanbu serves as a vital oil export hub. Iranian forces have imposed a blockade on the Strait of Hormuz and launched attacks on vessels in the Persian Gulf, compelling Saudi Arabia to redirect oil shipments through the East West Pipeline to Yanbu.
Rystad Energy analyst Aditya Saraswat cautioned that any significant disruption at Yanbu could eliminate 5 to 6 million barrels per day from global supply, with the potential to drive prices toward $150 or beyond.
Saudi defense systems successfully intercepted a ballistic missile targeting Yanbu. Damage assessment at the Samref refinery remains in progress. Aramco has withheld comment while Exxon has yet to provide a response.
Qatar’s Pearl Facility Suffers Strike
Iranian missile fire also reached Ras Laffan Industrial City in Qatar, where Shell operates the Pearl plant, the largest gas-to-liquids facility globally. Shell reported that a fire erupted at Pearl following the strike, though emergency teams extinguished it rapidly. The facility has been secured and placed in a safe operational status, according to company statements, with zero casualties.
Shell continues coordinating with Qatari government officials and QatarEnergy to evaluate the full scope of the damage.
QatarEnergy, ranked as the world’s second-largest LNG exporter, acknowledged substantial damage to its LNG processing infrastructure at Ras Laffan. All fires were successfully contained by early Thursday morning, with no reported injuries.
Qatar’s annual LNG production reaches 77 million metric tons. Any prolonged disruption at Ras Laffan could create ripple effects throughout global gas markets.
Presidential Warning Issued
President Donald Trump addressed the situation through social media channels, issuing a stern warning to Iranian leadership against further strikes on Qatari LNG infrastructure. He indicated potential retaliation involving the complete destruction of Iran’s South Pars Gas Field.
Trump revealed that Israeli forces struck South Pars without prior notification to the United States or Qatar. Qatar’s foreign ministry ordered the expulsion of Iran’s security and military attachés within 24 hours, characterizing the Ras Laffan assault as a direct challenge to national security.
Kuwait experienced drone strikes on two major refineries — Mina al-Ahmadi and Mina Abdullah — resulting in fires at both locations. The UAE implemented emergency shutdowns at the Habshan gas facilities and the Bab oil field following successful missile interceptions. Both nations reported zero casualties.
Shell indicated that damage assessment operations at Pearl continue as of Thursday.
