Middle East Conflict Fuels Global Oil Price Surge and Supply Disruptions
The escalating conflict in the Middle East has sent shockwaves through global energy markets, with oil refineries, depots, and tankers becoming prime targets for drone and missile strikes. These attacks, attributed to US-Israeli and Iranian forces in the initial weeks of the hostilities, have significantly driven up international oil prices. In response to the growing instability, the International Energy Agency (IEA) has announced a coordinated release of 400 million barrels of oil from its 32 member nations, aiming to stabilise supply and temper price volatility.
The impact on production has been severe in several key oil-producing nations and transit hubs. In Oman, Saudi Arabia, the United Arab Emirates, and Iran, a series of fires and strikes at oil refineries have led to either temporary shutdowns or complete cessation of operations. The vital Strait of Hormuz, a narrow maritime chokepoint connecting these major oil producers to the rest of the world, has seen its sea traffic dwindle to a standstill. Ships are reportedly anchored idle, facing the perilous risk of drone attacks.
Key Strikes Disrupting Global Oil Supply and Transit
ABC NEWS Verify has meticulously mapped several critical strikes that have inflicted major damage on oil supply chains and their transit routes.
Salalah Port, Oman
This week, a drone strike ignited an explosion and fire at the Salalah port and its associated oil facility. This incident marks the first-ever recorded attack on Oman’s oil sector. While the Omani sultanate reported that several drones were intercepted and shot down over the port, others managed to strike the oil refinery. Despite the damage, authorities stated that oil supply remained unaffected.Video captured from the bulk carrier AUSONE clearly shows plumes of smoke billowing from the first row of storage tanks.
Further footage vividly illustrates the moment of impact, with one of the eight large storage tanks engulfed in flames.
Ras Tanura, Saudi Arabia
Satellite imagery captured in early March by Vantor depicted the Ras Tanura facility ablaze, with thick smoke rising from the refinery. Iranian drones targeted the Saudi Aramco site and its crucial export terminal in the early stages of the conflict. The Ras Tanura facility is a significant producer, churning out over 500,000 barrels per day, and holds a strategically important location on the Persian Gulf.Verified video footage has documented the aftermath of the attack. Saudi authorities described the facility shutdown, which occurred on March 2, as temporary, and recent reports indicate that it is nearing readiness to resume operations.
Ruwais Refinery, UAE
At approximately 3:19 PM on March 10, authorities in the United Arab Emirates confirmed that a fire at the Abu Dhabi Ruwais Industrial Complex was the direct result of a drone attack. This incident forced the UAE’s oil giant, ADNOC, to suspend operations. While no injuries were reported, the shutdown has reportedly had a substantial impact, affecting the daily production of 4.85 million barrels of crude oil.In a separate incident, the Fujairah industrial zone, situated on the UAE’s eastern coast, was also targeted.
This image shows onlookers observing the Al Hilal City district as flames and smoke erupt from an oil facility.
Tond-gouyan Oil Refinery, Iran
Around 4 AM on March 7, the Shahid Tond-gouyan oil refinery, located on the southern outskirts of Tehran, became a target. The refinery is situated within a major industrial zone near Shahr-e Rey, along the historic Tehran-to-Qom road corridor. Although initial reports suggested the refinery itself might have escaped direct damage, subsequent video and imagery revealed smoke and flames emanating from fuel tanks within the complex. This facility is a cornerstone of the capital’s energy infrastructure, boasting a refining capacity of over 200,000 barrels of crude oil per day.Shahran Oil Depot, Iran
In the early hours of March 8, the Shahran oil depot in north-west Tehran was struck. Nestled at the foothills of the Alborz mountains, this depot is one of the capital’s largest fuel storage facilities. It houses several million litres of fuel across numerous storage tanks, making it a critical hub for the city’s fuel distribution network. Verified video footage from the south of the depot captures large flames licking the edge of the street as bystanders flee the scene.Aqdasiyeh Oil Warehouse, Iran
Over the weekend, the Aqdasiyeh fuel storage facility in north-east Tehran was targeted. Video footage filmed in the vicinity, and geolocated by ABC NEWS Verify, shows immense plumes of smoke rising from the fuel storage area. At the time, Soudeh Najafi, a spokesperson for the Iranian health authority, advised residents in the Tehran area to remain indoors to avoid exposure to toxic air pollution.
Strait of Hormuz Blockade Cripples Global Trade
Iran’s actions have effectively led to the closure of the Strait of Hormuz, resulting in approximately 20 million barrels of crude oil products becoming stranded daily in this crucial shipping passage. The IEA estimates this represents a staggering 25 per cent of the world’s seaborne oil trade.
The Thai vessel Mayuree Naree came under fire this week as it attempted to navigate the Strait during Iran’s blockade. The Royal Thai Navy has released a series of images from the ship. According to the Sultanate of Oman, the 20 crew members on board were rescued and subsequently transported to Oman.
