MANAMA, BAHRAIN — March 9, 2026 — Bahrain’s state-owned energy giant, Bapco Energies, officially declared force majeure on its group operations today following a devastating drone attack on the Sitra refinery. The strike, attributed to Iranian forces, ignited a massive blaze at the 405,000 barrel-per-day (b/d) facility, effectively paralyzing the kingdom’s primary export engine.
The declaration comes as the Middle East’s energy infrastructure faces its most significant threat in decades. By invoking force majeure, Bapco is legally released from its immediate contractual obligations to international buyers, a move that signaled to global markets that the disruption is both severe and of indefinite duration.
The Attack: 32 Wounded as Drones Breach Defenses
The strike occurred in the early hours of Monday morning. While Bahrain’s Defence Force reported the interception of over 160 drones since hostilities began on February 28, this specific wave managed to penetrate the Sitra Island industrial zone.
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Casualties and Damage: The Ministry of Health confirmed 32 civilian injuries in the residential areas surrounding the refinery, including a 17-year-old girl in serious condition.
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The Blaze: Eyewitnesses described thick, black plumes of smoke rising from the facility’s newly upgraded units. The fire reportedly targeted a critical refining unit, threatening the multi-billion dollar expansion project that only recently boosted capacity from 267,000 b/d.
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Maameer Impact: Secondary strikes were reported in the nearby Maameer area, causing further material damage to auxiliary energy storage sites.
“Bapco Energies hereby serves notice of force majeure on its group operations which have been affected by the ongoing regional conflict and the recent attack on its refinery complex,” the company stated via the Bahrain News Agency.
Market Fallout: Brent Surges Past $115
The Sitra disruption, while localized, acted as a catalyst for a broader market explosion. With the Strait of Hormuz already facing a “disputed closure,” the loss of Bahrain’s refined product exports added to a growing “supply vacuum.”
| Market Indicator | Pre-Attack (Mar 6) | Post-Attack (Mar 9) | Status |
| Brent Crude | $92.69 | $115.40 | 📈 Multi-year High |
| WTI Crude | $90.90 | $114.20 | 📈 Surge |
| Asian Stocks (KOSPI) | — | -6.0% | 📉 Plunge |
Strategic Resilience: Local Supply vs. Global Export
Despite the chaos, Bapco has moved quickly to reassure the domestic population.
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Domestic Priority: The company emphasized that “all local market needs are fully secured” through pre-established contingency plans.
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Strategic Reserves: Bahrain has reportedly tapped into its internal reserves to ensure that fuel stations and essential services remain operational, even as international shipments are suspended.
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Regional Contagion: Bahrain is not alone. Kuwait’s KPC has also issued force majeure notices this week, as the “backlog of barrels” grows across the Gulf with no clear path through the Hormuz Chasm.
The Trump Response: “A Very Small Price”
Responding to the price spike on Truth Social, U.S. President Donald Trump downplayed the economic shock, stating that short-term oil price surges are “a very small price to pay for USA and World Safety and Peace.” He predicted prices would drop “rapidly” once the Iranian threat is neutralized, a sentiment that did little to calm nervous traders in London and Singapore.
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