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Saudi Drone Interception Threatens Shaybah Oil Production

Bloomberg Markets •
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Saudi Arabia intercepted four drones targeting its Shaybah oil field, capable of producing 1 million barrels daily, according to state media. This follows last week's halt of operations at the Ras Tanura refinery, the kingdom's largest, after an Iranian drone strike. The conflict in the Middle East has already driven up crude prices, and any disruption to Shaybah's output could further strain global energy supplies.

Saudi Arabia is diverting barrels to Red Sea ports after the Strait of Hormuz closure, highlighting its vulnerability to regional attacks. The kingdom is also engaging diplomatically with Iran to de-escalate tensions. Shaybah's 2.4 Bcf/d natural gas liquids recovery plant underscores its strategic importance beyond crude production. This latest incident signals escalating threats to critical energy infrastructure in a region already under pressure.