3 min readNew DelhiMar 2, 2026 06:46 PM IST
First published on: Mar 2, 2026 at 06:05 PM IST
Amid the escalating US-Israel Iran war, Qatar has halted the production of liquefied natural gas and Saudi Arabia shut its biggest domestic oil refinery. The development followed a drone strike and is a precautionary measure adopted across oil and gas facilities in the Middle East.
Apart from that, oil production has been halted in Iraqi Kurdistan and several major Israeli gas fields, putting exports to Egypt to a standstill. The tensions continued to escalate on the third day of conflict with explosions rocking Tehran and Iran attacking US assets in the Gulf.
As the conflict put shipping to a near halt in the Strait of Hormuz, through which a fifth of global oil supply flows, oil prices rose 13% to above $82 a barrel, the highest since January last year.
Saudi’s Aramco shut Ras Tanura refinery
Saudi Arabia’s state oil giant Aramco’s Ras Tanura refinery was shut as a precautionary measure. The refinery is part of an energy complex on the Gulf coast and it acts as a crucial export terminal for Saudi crude oil.
Oil companies in Iraqi Kurdistan halt production
Companies including DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy have halted their production as a precautionary measure in Iraqi Kurdistan. The firms used to export 200,000 barrels of oil per day (bpd) via pipeline to Turkey’s Ceyhan port in February this year.
Leviathan gas field shut in Israel
Meanwhile, in Israel, the Benjamin Netanyahu government has instructed Chevron to temporarily shut down the giant Leviathan gas field. As part of its $35 billion export deal to Egypt, the gas field is in the process of increasing its capacity to around 21 billion cubic metres a year. A spokesperson for Chevron, which also operates the Tamar gas field offshore Israel told Reuters its facilities were safe.
Raising concerns, explosions were heard two days ago in Iran’s Kharg Islan, which processes 90% of Iran’s crude exports. It remains unknown how the facilities were impacted. Qatar said an energy facility belonging to gas giant Qatar Energy was attacked by two Iranian drones on Monday, with authorities still assessing the damage.
Iran, the third largest producer in the Organization of the Petroleum Exporting Countries, pumps about 4.5% of global oil supplies. Iran’s output is about 3.3 million barrels per day of crude, plus 1.3 million bpd of condensate and other liquids.
With Reuters inputs
A plume of smoke rises after a strike in Tehran, Iran, Tuesday. (AP Photo) 
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