Report: Houthi Strike Took Saudi Refinery Offline Through Mid-August
The effects of the Houthi attack on Saudi energy infrastructure will continue on well into the next month, according to state oil company Saudi Aramco. The Houthi strike on the giant Jizan refinery complex near the Yemeni border caused damage to its sophisticated Integrated Gasification Combined Cycle (IGCC) on-site powerplant, which consumes heavy residual products and generates electricity, steam and hydrogen gas. A tank farm also sustained damage, Industrial Info Resources (IIR) told Reuters. The report aligns with the location of infrared heat signatures at the site on the day of the attack.
The 400,000 bpd plant has shut down in order to make repairs, and the work will take until mid-August, per IIR. In the meantime, one of the biggest producers of fuel in the region is offline, adding to global restrictions on the availability of diesel.
In addition to the effects at Jizan, the processing complex at Abqaiq also took a hard hit. Apparent strikes to the stabilization trains - where crude is desulfurized and lightly distilled to remove light fractions - could affect pipeline volumes, but Saudi Aramco has not yet commented on the facility's status. Public satellite imagery shows clear burn scars around four out of the six spheroid pressure vessels used during the degassing process at the facility.
Some portion of these strikes may have been launched by Houthi forces operating alongside Iran-backed militias in Iraqi territory, according to Reuters - a sign of a deeper level of coordination between the different regional militant groups sponsored by Tehran, and a new willingness on the Houthis' part to mount operations abroad.
???????? Houthis/Iraqi militia drone strikes on Saudi Aramco's Abqaiq oil processing plant appear to have disabled multiple crude oil processing spheroids.
— Egypt's Intel Observer (@EGYOSINT) July 27, 2026
Sentinel-2 imagery shows burn scars across four of the six spheroids, including two that appear to have been destroyed.… https://t.co/so1NKZwBwl pic.twitter.com/l4t6VQqQA3
At seven million barrels of capacity per day, Abqaiq is the most important single location for the global oil supply chain. Despite the potential ramifications of the attack - and any further attacks that might potentially follow - the Brent crude oil benchmark has settled below $90, down compared to one week ago.
Red Sea instability
Yemen's Houthi rebels have vowed to blockade Saudi exports as a means of applying pressure to the U.S. and to Saudi negotiators, with whom the group wishes to settle a long conflict dating back to the Yemeni civil war. The group has attacked multiple ships to enforce its blockade, but Chinese tankers are reportedly exempt, and have been passing through Houthi-controlled waters without difficulty.
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While it is creating disruption in its own home waters, the Houthi group denies involvement with an attack on two LNG carriers at Damietta, Egypt earlier this week. Egyptian officials have confirmed that the two-ship simultaneous strike was carried out with drones.
A Chinese-flagged bulk carrier just completed a full transit from China to Jeddah through Bab el-Mandeb, straight through the active Houthi blockade. AIS declarations signaled Chinese ownership and crew the entire way.
— Windward (@WindwardAI) July 30, 2026
No dark activity, no GPS manipulation, and no course… pic.twitter.com/HY9ANZELuY