In a fresh escalation of the energy crisis, an Iranian drone strike has forced the United Arab Emirates (UAE) to halt production at its biggest Ruwais oil refinery. The production was halted as a precautionary measure after the drone strike caused a fire in the industrial area in which the Ruwais oil refinery is located, Bloomberg reported on Tuesday.
According to the report, the matter has not yet been made public, but the Abu Dhabi National Oil Co. was assessing damage at the plant. The refinery, touted to be the biggest in the UAE, can process up to 922,000 barrels of oil per day. Most of the gasoline, diesel, and jet fuel processed by the refinery is exported, and only some of it is used domestically.
The shutdown adds to a series of similar incidents in the Middle East since the start of the US-Iran conflict on February 28. Earlier last week, Saudi Arabia shut down its largest refinery, and Qatar halted production at the world’s biggest liquefied natural gas (LNG) export facility after being struck by Iranian drones.
In response to the US and Israeli strikes, Iran has been attacking US assets in several Gulf countries. Energy sites in these countries are also on Iran’s target, although Tehran has apologized to its West Asian neighbours for attacks on their territory.
The Iranian strikes and the disruption of key shipping routes through the Strait of Hormuz have triggered a massive global energy crisis, with several countries, including India, Pakistan, and China, facing crude and gas shortages.
The prices of crude oil have surged to record levels. At one point on Monday, the crude oil touched nearly USD 120 per barrel but dropped below the USD 100-level after Trump announced the war in Iran would be over soon.