Saudi Oil Output Drops by 600,000 bpd After Attacks on Energy Facilities

The attacks targeted oil, gas and electricity sites in Riyadh, the Eastern Province and Yanbu Industrial City, resulting in the death of one Saudi national from an industrial security unit affiliated with a national energy company, while seven others were injured, SPA reported on Thursday. The disruption comes amid a broader escalation across the Gulf region, where Saudi Arabia and other countries, including the United Arab Emirates, Bahrain, Kuwait, Oman and Qatar, have faced repeated drone and missile attacks attributed to Iran in recent weeks, in the context of the ongoing war involving the United States and Israel since February 28. According to the same official source, the continued targeting of energy infrastructure is affecting supply levels, slowing recovery efforts and contributing to increased volatility in global oil markets, particularly due to concerns over the security of supply for consuming countries. Oil prices rose after a brief decline earlier in the week, as markets react to uncertainty surrounding a fragile ceasefire between the United States and Iran and the potential reopening of the Strait of Hormuz, a strategic maritime corridor that typically carries around one-fifth of global oil and gas supplies. U.S. President Donald Trump announced a two-week pause in hostilities with Iran, while Tehran signaled it would reopen the waterway. However, the truce remains uncertain amid continued Israeli strikes in Lebanon and ongoing Iranian attacks on Gulf states. While the United States and Israel maintain that Lebanon is not covered by the ceasefire, Iran and mediator Pakistan insist that it is included, a divergence that continues to complicate diplomatic efforts. Several world leaders have called for Lebanon to be incorporated into the truce in an effort to prevent further regional escalation.