One of the world’s largest refineries in the United Arab Emirates was shut as a “precaution” after a drone attack nearby, a source said, while Saudi giant Aramco warned of the war’s devastating consequences on oil.

Aramco CEO and president Amin H. Nasser warned the war could have “catastrophic consequences” on oil markets, and called for reopening the Strait of Hormuz — which normally carries about 20% of global oil supplies but has been closed by the conflict.

Tehran appears to be attempting to knock major Gulf refineries offline as it tightens its chokehold on the Strait of Hormuz in a quest to inflict maximum pain on the global economy.

“The Ruwais refinery has halted operations out of precaution,” the source said, requesting anonymity to discuss sensitive matters.

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Earlier, the Abu Dhabi Media Office said a drone attack caused a fire in Ruwais Industrial City in the emirate of Abu Dhabi.

Neither the source nor the authorities said whether the refinery had been hit.

State-owned oil company Adnoc describes its Ruwais facility as “the world’s fourth-largest single-site refinery”.

The Middle East war has now severely destabilised supplies. Iran has fired at energy installations across the Gulf, including Aramco’s sprawling Ras Tanura facility, which halted some operations.

The massive complex on the Gulf coast is home to one of the Middle East’s largest refineries and is a cornerstone of the Saudi energy sector.

Saudi oil fields have also been targeted.

A driver working at the Ruwais industrial complex told AFP he was picking up staff who were ordered to evacuate.

“Just as we were about to leave, we saw two more bursts of fire rising from the complex, with loud sounds like explosions,” he said, requesting not to be named.

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‘Chain reaction’

“The disruption has caused a severe chain reaction in not only shipping and insurance but there’s also a drastic domino effect on aviation, agriculture, automotive and other industries,” Nasser told a media call to announce Aramco’s 2025 earnings.

“There would be catastrophic consequences for the world’s oil markets the longer the disruption goes on, and the more drastic the consequences for the global economy.

The oil-rich Gulf has borne the brunt of Iran’s attacks in response to US-Israeli strikes that sparked the Middle East war, with Tehran targeting US assets but also civilian infrastructure, including energy facilities and airports.

“While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”

“It’s absolutely critical that shipping resumes in the Strait of Hormuz,” Nasser said.

Oil prices have swung wildly over supply disruptions, rocketing 30% on Monday before plunging again on comments from United States President Donald Trump that the war may soon end.

“The Gulf energy sector is getting whacked from multiple angles,” said Robert Mogielnicki, a non-resident scholar at the Arab Gulf States Institute.

“Energy facilities being targeted, export capability though the strait is hampered, and storage capacity filling up,” he added.

‘Dangerous precedent’

Iranian attacks have already forced state-owned QatarEnergy, one of the world’s largest producers of liquefied natural gas, to halt production last week and declare force majeure.

Energy producers in Kuwait made similar declarations, which are a warning that events beyond their control may lead them to miss export targets.

Nasser was speaking as Aramco reported a 12.1% decline in net income in 2025 after higher supply, US tariffs and other economic headwinds weighed on revenues.

The Saudi giant, which launched a record initial public offering in 2019, also announced a first-ever share buyback programme of up to $3 billion over 18 months.

Qatar’s foreign ministry spokesman Majed al-Ansari also warned today that attacks on energy facilities “on both sides, are a dangerous precedent … it will cause repercussions throughout the world”.

Throughout last year, the oil alliance OPEC+, of which Saudi Arabia is a key member, oversaw an increase in production, eroding prices.

The government has revised the priority order for allocating domestically produced natural gas, placing LPG production, CNG for transport and piped cooking gas for households at the top of the list, as disruptions in imported gas supplies intensify amid the widening West Asia conflict, PTI reported.According to a gazette notification, the requirements of these sectors will be fully met first before gas is supplied to other sectors.Under the revised framework, the fertiliser sector has been placed second, with at least 70% of its past six-month average gas demand to be met, subject to availability.At the third priority level, gas supply to tea industries, manufacturing units and other industrial consumers will be maintained at 80% of their past six-month average consumption, depending on operational availability.City gas distribution (CGD) entities supplying gas to industrial and commercial consumers have been placed at fourth priority in the revised allocation order.The reshuffle means that domestically produced gas will be diverted towards priority sectors, while supplies to petrochemical plants, power plants and other high-priced gas consumers may be curtailed.The move follows supply disruptions triggered by the ongoing conflict in West Asia.Following US-Israeli strikes inside Iran and Tehran’s retaliation, maritime traffic through the Strait of Hormuz has sharply declined, while insurance premiums have surged and energy markets have turned volatile.The strait handles roughly one-fifth of global seaborne oil and nearly one-third of LNG shipments, and is a key route for India’s imports of LNG and LPG.With tanker movement slowing, the government has decided to rework the allocation of domestically available gas to ensure supplies to essential sectors such as household cooking fuel and vehicular transport.Natural gas produced in India currently meets about half of the country’s total consumption of around 191 million standard cubic metres per day.“The Central Government has assessed that the ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas (LNG) shipments through the Strait of Hormuz and suppliers have invoked force majeure clause,” the notification said.It added that the revised allocation was necessary to maintain supplies and ensure equitable distribution of natural gas to priority sectors.The notification stated that domestic piped natural gas, CNG for vehicles and LPG production — including LPG shrinkage requirements — will receive 100% of their past six-month average gas consumption.Gas required for pipeline compressor fuel and other operational needs of the pipeline network will also receive priority allocation.For fertiliser plants, gas supply will be maintained at 70% of their past six-month average consumption, and the fuel must be used strictly for fertiliser production.“The gas marketing entities shall ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at 80 per cent of their past six month average gas consumption subject to operational availability,” the order said.Similarly, CGD companies will ensure industrial and commercial consumers supplied through their networks receive 80% of their past six-month average gas consumption, depending on availability.To meet these priorities, gas supplies will be curtailed first to petrochemical facilities such as ONGC Petro additions Ltd, GAIL Pata Petrochemical Complex, Reliance O2C and other high-pressure high-temperature gas consumers, followed by power plants if required, the order said.Oil refining companies have also been asked to absorb part of the LNG supply disruption by reducing gas consumption at refineries to around 65% of their past six-month average usage.State-owned GAIL has been tasked with managing the allocation and distribution of natural gas to implement the revised priority order.