Saudi Aramco's Jizan Refinery Hit Again as Houthi Attacks Escalate

Saudi Aramco's Jizan refinery, a 400,000-barrel-per-day facility located on the Red Sea coast, faced a new attack on Monday, potentially jeopardizing a key refining hub in the region, according to the Financial Times. The attack, witnessed by two knowledgeable sources, mirrors a previous incident last month that briefly halted operations.

However, Aramco has not yet released any information regarding the extent of damage or responsibility for the latest assault. This refinery has frequently been a target since the resumption of conflict between Saudi Arabia and Yemen's Iran-aligned Houthis this summer. In July and August, the Houthis targeted Aramco facilities in Jizan and Yanbu, leaving visible smoke in the atmosphere and causing disruptions.

With the ongoing war with Iran disrupting exports through the Strait of Hormuz, Saudi Arabia has intensified its oil shipments westward through the East West pipeline towards Yanbu. Despite the setbacks, Saudi Arabia's oil output remains resilient, although the number of exports from Jizan has significantly decreased following the prior attack, with no shipments recorded in August.

The Houthi group's attacks have also put at risk tankers and other oil infrastructure along Saudi Arabia's alternative Red Sea export route. Aramco CEO Amin Nasser previously stated that the earlier strikes had temporary impacts but did not substantially affect the company's operations or finances. As oil prices surge, the situation has escalated due to Iran's proposal of a new shipping corridor through Hormuz, which Tehran claims it would control, and a restricted maritime zone imposed by Iran demanding vessels to coordinate with the country.

This proposal came amid a series of maritime attacks, including the U.S. forces targeting three Iranian oil tankers after Iran fired ballistic missiles at two U.S. warships.