Saudi Aramco Facilities Under Attack: Global Oil Markets on High Alert

Saudi Arabia's critical oil infrastructure has been hit by drone and missile strikes on its eastern and western coasts, targeting key facilities owned by state-run energy giant Aramco. The attacks, claimed by Yemen's Houthi rebels, have ignited fires at the Jazan refinery complex and the Abqaiq facility, which is the world's largest crude oil stabilization plant.

The Jazan refinery has a processing capacity of 400,000 barrels per day (bpd) of crude into products including gasoline, ultra-low sulfur diesel, benzene, and paraxylene. The Abqaiq facility processes and stabilizes the bulk of Saudi crude, with a capacity of up to 7 million bpd.

The attacks have raised concerns about the potential impact on global oil markets, with major marine insurers at Lloyd's of London suspending war-risk insurance for Saudi-linked vessels in the Red Sea. This has effectively blocked loadings from Saudi Red Sea terminals such as Yanbu and Jizan.