A major refinery in the United Arab Emirates (UAE) has been shut down following a drone attack, sparking concerns over global oil supplies. The Ruwais refinery, described as the world’s fourth-largest single-site refinery, halted operations as a precautionary measure after the attack on Ruwais Industrial City in Abu Dhabi.
The incident has heightened tensions in the region, with Saudi Aramco CEO Amin H. Nasser warning of “catastrophic consequences” for oil markets if the conflict persists. The Strait of Hormuz, a critical waterway for global oil supplies, has been closed due to the conflict, with Iran allegedly attempting to disrupt major Gulf refineries.
The Middle East war has severely destabilized oil supplies, with Iran targeting energy installations across the Gulf, including Aramco’s Ras Tanura facility. The attack has caused a chain reaction, impacting shipping, insurance, aviation, agriculture, and other industries.
Nasser emphasized the need for shipping to resume in the Strait of Hormuz, stating it’s “absolutely critical” for global oil markets. Oil prices have swung wildly, rising 30% before plunging on comments from US President Donald Trump that the war may soon end.
The conflict has also prompted state-owned QatarEnergy to halt production and declare force majeure, while energy producers in Kuwait made similar declarations. Aramco reported a 12.1% decline in net income in 2025, citing higher supply, US tariffs, and economic headwinds.
