Saudi Aramco confirmed in a statement at 06:20 GMT Thursday that its Yanbu refinery complex on the Red Sea coast was struck overnight by multiple Iranian-design Shahed-238 loitering munitions, with at least 11 drones reaching the facility perimeter. Two crude distillation units totaling 460,000 barrels per day of throughput capacity have been taken offline, with restoration estimates ranging from 14 to 28 days according to a senior energy ministry official cited by Bloomberg.
Brent crude futures spiked 4.2% to $98.10 per barrel in Asian dealings — the highest level since the immediate aftermath of Russia's February 2022 invasion of Ukraine — before paring gains to settle at $96.40. WTI crude traded up to $94.00 per barrel. The strike represents the most significant escalation of the Iran war beyond direct combatants since hostilities began on February 28, and the first confirmed kinetic action against Saudi midstream infrastructure since the 2019 Abqaiq attack.
Hormuz and Bab el-Mandeb Risk
War-risk insurance premiums on VLCC tanker transits through the Strait of Hormuz jumped to $620,000 per voyage from Wednesday's $480,000 — a 29% intraday spike. Lloyd's of London marine underwriting committee added Yanbu and adjacent Red Sea ports to its enhanced-risk watch list, effectively pricing additional tanker calls. Bab el-Mandeb traffic has fallen to 31% of pre-war volumes per UN-IMO transit data, with the latest strike likely accelerating the shift toward longer Cape of Good Hope routings.
The Saudi government issued a statement promising "decisive retaliation" against the responsible parties. Defense Minister Khalid bin Salman is reportedly in Washington for emergency consultations with the Pentagon on theater air-defense reinforcements. THAAD and Patriot battery deliveries to the Kingdom have already accelerated since March under the $14 billion package signed in early April.
Equity Read-Through
U.S. integrated energy stocks gapped higher in pre-market: Exxon Mobil (XOM) +2.4%, Chevron (CVX) +2.2%, ConocoPhillips (COP