On Monday, Qatar suspended production at its liquefied natural gas facilities, while Saudi Arabia temporarily shut down its largest domestic oil refinery following a drone strike, according to sources. These moves came as U.S. and Israeli strikes, along with Iranian counterattacks, prompted precautionary closures of energy infrastructure across the Middle East.
The wave of assaults extended into a third consecutive day, leading to the suspension of much of Iraqi Kurdistan’s oil output and several key Israeli gas fields, disrupting shipments to Egypt.
Global oil prices jumped 13%, surpassing $82 per barrel, marking the highest level since January 2025, as conflict-induced disruptions brought shipping through the Strait of Hormuz responsible for about 20% of worldwide oil flows to a near standstill.
Saudi Aramco’s Ras Tanura refinery, part of the kingdom’s Gulf coast energy complex and a critical crude export hub, halted operations as a precaution. The facility normally processes 550,000 barrels of oil per day.
In Iraqi Kurdistan, which shipped roughly 200,000 barrels per day via pipeline to Turkey’s Ceyhan port in February, firms including DNO, Gulf Keystone Petroleum, Dana Gas, and HKN Energy paused operations at their oil fields, with no damage reported.
Offshore in Israel, the government ordered Chevron to temporarily stop production at the Leviathan gas field, currently being expanded to nearly 21 billion cubic meters per year as part of a $35 billion export arrangement with Egypt. Chevron also operates the Tamar gas field, which remained unaffected. Energean suspended operations at its smaller offshore production vessel serving adjacent fields.
In Iran, explosions were reported on Kharg Island, the facility handling about 90% of the country’s crude exports, though the extent of any damage was not immediately clear. Iran, the third-largest OPEC producer, accounts for roughly 4.5% of global oil supply, with daily output around 3.3 million barrels of crude plus 1.3 million barrels of condensates and other liquids.
Qatar’s authorities confirmed that a facility operated by Qatar Energy was struck by two Iranian drones on Monday, and officials are still evaluating the extent of the damage.