A widening supply shock propelled crude oil 35% higher in a week, pushing prices above $90 a barrel, as the Strait of Hormuz closed, drone strikes crippled Saudi oilfields, and a wave of force majeure declarations rippled through global energy markets.
This is the result of escalating tensions between the U.S and Iran.
Saudi Arabia’s Crown Assets Under Fire
Saudi Aramco’s Berri oilfield, which produces about 250,000 barrels per day, reportedly suffered minor debris damage on Saturday after Saudi defenses intercepted a drone attributed to Iran.
Earlier, Saudi Arabian air defenses intercepted 20 drones launched in five waves toward Shaybah Oilfield, a 1-million-barrel-per-day facility operated by Saudi Aramco in the Empty Quarter desert, the Saudi Defense Ministry said in a series of posts on X.
Separately, the ministry said Ras Tanura Refinery—a 550,000-barrel-per-day facility on the kingdom’s east coast—was targeted twice during the same week, on March 2 and March 4, according to an Argus report.
In Abu Dhabi, a drone struck the UAE’s Mussafah fuel terminal; authorities contained the fire with no injuries or operational disruption.
Hormuz Blockaded, Storage Filling Fast
According to a Reuters report, the Islamic Revolutionary Guard Corps …
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