Bapco Energies Halts Operations After Attack on Bahrain Refinery, Declares Force Majeure

Bapco Energies confirmed on March 9, 2026, that a coordinated attack on its Riffa refinery complex has forced the company to suspend all refining operations and declare force majeure on all product deliveries. The incident, which occurred during overnight hours, damaged critical processing units and led to a temporary shutdown of the facility’s 240,000 barrels per day (bpd) refining capacity. The company has not yet disclosed the perpetrators, but the attack follows a pattern of regional instability affecting energy infrastructure. The declaration marks a significant supply disruption in the Middle East, a key hub for global oil logistics. With Bapco Energies responsible for approximately 40% of Bahrain’s refined fuel output and a major exporter to neighboring Gulf states, the outage could strain regional inventories. The company’s force majeure applies to gasoline, diesel, jet fuel, and fuel oil shipments, affecting contracts across Saudi Arabia, the UAE, and parts of India. Global crude markets reacted sharply. Crude oil futures (CL=F) surged by 3.6% to $87.40 per barrel within hours of the announcement, driven by concerns over supply continuity and escalating geopolitical risks. The CBOE Volatility Index (^VIX) climbed 18% to 22.3, signaling heightened investor unease. Energy equities across the Gulf and North America saw mixed but generally negative reactions, with defense and security firms seeing modest gains amid renewed focus on infrastructure protection. The incident underscores vulnerabilities in critical energy infrastructure amid ongoing regional tensions. Analysts note that with refinery capacity in the Arabian Gulf already under strain due to maintenance and geopolitical uncertainty, such disruptions carry high economic and strategic costs. The situation remains fluid, with Bapco Energies working to assess damages and restore operations, though estimates suggest a recovery timeline of at least 45 to 60 days.