Key Takeaways
- Iranian missile and drone attacks targeted Shell’s Pearl gas-to-liquids facility in Qatar and the Samref refinery in Saudi Arabia, which Exxon Mobil co-owns
- Crude oil prices surged approximately 3% to reach $109 per barrel, with intraday peaks touching $120
- QatarEnergy confirmed substantial damage to liquefied natural gas infrastructure at the Ras Laffan complex
- President Trump issued warnings to Tehran, threatening retaliatory strikes on Iran’s South Pars Gas Field
- Energy infrastructure in Kuwait, the UAE, and Saudi Arabia faced coordinated drone and missile bombardment
A coordinated Iranian military operation has targeted critical energy infrastructure throughout the Middle East in the last day, striking facilities with significant Shell and Exxon Mobil ownership stakes.
Crude oil markets responded with a 3% climb to $109 per barrel amid the escalating tensions. Trading saw momentary spikes reaching $120 before stabilizing at lower levels. Market reaction pushed Exxon shares up 1.2% during Thursday trading, while Shell experienced a 0.6% decline.
The Samref refinery located in Yanbu, Saudi Arabia, sustained damage from a drone attack. This strategic facility operates as a joint venture between Saudi Aramco and Exxon Mobil, with Exxon maintaining a 50% ownership position. The refinery’s daily processing capacity reaches 400,000 barrels of crude oil.
Yanbu’s strategic importance has grown significantly as a Red Sea export terminal. With Iran’s blockade of the Strait of Hormuz and ongoing attacks on Persian Gulf shipping, Saudi Arabia has increasingly relied on the East West Pipeline to transport oil to Yanbu for export.
According to Aditya Saraswat from Rystad Energy, any significant interruption at Yanbu could eliminate 5 to 6 million barrels daily from global markets, potentially driving prices toward $150 per barrel or beyond.
Saudi defense systems successfully intercepted an incoming ballistic missile targeting Yanbu. Full assessment of the Samref refinery damage continues. Saudi Aramco has not issued a statement, while Exxon has yet to provide comment.
Qatar’s Pearl Facility Sustains Iranian Strike
The Ras Laffan Industrial City in Qatar also came under Iranian missile attack, impacting Shell’s Pearl plant—the planet’s largest gas-to-liquids production facility. Shell reported that although a fire ignited at Pearl, emergency response teams extinguished it rapidly. The facility has been secured in “a safe state,” according to company statements, with zero personnel casualties.
Shell confirmed ongoing collaboration with Qatari government agencies and QatarEnergy to determine the full scope of damage.
QatarEnergy, ranking as the world’s second-largest liquefied natural gas producer, acknowledged “extensive damage” across its LNG processing operations at Ras Laffan. Fire suppression efforts successfully controlled all blazes by Thursday morning, with no reported injuries.
Qatar’s annual LNG output stands at 77 million metric tons. Any prolonged disruption at Ras Laffan carries implications for worldwide natural gas availability.
Presidential Warning Issued to Tehran
President Donald Trump issued a stern warning via social media, cautioning Iran against additional strikes on Qatari LNG infrastructure. He threatened to “massively blow up the entirety of the South Pars Gas Field” should further attacks occur.
Trump disclosed that Israeli forces had previously struck South Pars without coordinating with either U.S. or Qatari authorities. Qatar’s foreign ministry responded by expelling Iranian security and military personnel within a 24-hour timeframe and characterized the Ras Laffan assault as a “direct threat” to the nation’s security interests.
Kuwait experienced drone strikes on two major refineries—Mina al-Ahmadi and Mina Abdullah—resulting in fires at both locations. The UAE temporarily shut down operations at the Habshan gas processing complex and the Bab oil field following successful missile interceptions. Neither country reported casualties.
Shell indicated that damage evaluation at the Pearl facility remains in progress as of Thursday.
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