Saudi Aramco Shuts 400,000-BPD Jazan Refinery Following Houthi Strike

Key Facts

In a move that underscores the vulnerability of oil infrastructure to rising geopolitical tensions, Saudi Aramco has halted operations at its 400,000-bpd Jazan refinery. The shutdown follows a Houthi strike on July 27 that caused physical damage to the facility's infrastructure, specifically the Integrated Gasification Combined Cycle complex and the tank farm. According to reports, repair work is currently underway with a tentative completion date set for August 15 to restore full refining capacity.

The removal of 400,000 barrels per day from the global refining map places significant pressure on energy markets, as the Jazan facility serves as a critical hub for processing crude and bypassing traditional maritime chokepoints. The damage to its gasification units and storage tanks limits the flexibility of finished fuel deliveries compared to crude oil. This disruption highlights the ongoing risks to regional energy security, with the facility requiring nearly three weeks of technical repairs to address the impact of the kinetic attack.

Regarding equity performance, Saudi Aramco (2222.SR) shares were priced at 26.3 SAR (close July 28, 2026), having reached a day high of 26.46 SAR. Traders are closely watching the August 15 repair deadline as the primary catalyst for the resumption of operations. With no major upcoming energy sector events in the immediate economic calendar, market attention remains fixed on the operational recovery at Jazan and any further official updates regarding the restart schedule.