India, March 2 -- Saudi Aramco has shut down its Ras Tanura refinery as a precautionary measure after the facility was hit by a drone, in an escalation of the Iran war that now threatens to ensnare the whole of the Middle East. Crude oil prices surged to $80/barrel on the news.

Two drones were intercepted at the facility, with the debris causing a limited fire, a spokesperson for the Saudi Defence Ministry said on Al Arabiya TV, adding there were no injuries.

The shuttering of Saudi Aramco's Ras Tanura refinery-among the largest in Saudi Arabia-will likely add to supply worries as the Strait of Hormuz grinds to a near-halt. At least three tankers were attacked in the waterway that carries nearly a fifth of world's crude oil supply daily...