Bahrain’s national energy giant, Bapco Energies, has officially invoked force majeure clauses on its supply contracts today, March 9, 2026. The move follows a significant drone strike on the Sitra refinery, a cornerstone of the kingdom’s economy and a major regional processing hub.

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The Impact on Operations

The attack targeted the newly modernized Sitra facility, which recently reached a peak capacity of 405,000 barrels per day (bpd).

• Infrastructure Damage: Thermal imaging and local reports confirm a major blaze at a primary distillation unit.
• Safety Status: While structural damage is extensive, Bapco has confirmed that all personnel were safely evacuated with no reported fatalities.
• Legal Standing: By declaring force majeure, Bapco is legally protected from liability for failing to meet export volumes due to these “unforeseeable circumstances” beyond its control.

Supply Outlook

Segment	Current Status
Domestic Fuel	Stable. Bapco is tapping into strategic national reserves to ensure local gas stations and power plants remain operational.
Global Exports	Suspended. International buyers should expect indefinite delays as the port of Sitra remains under high-security lockdown.

Global Energy Fallout

This disruption is the latest in a series of “energy-focused” strikes across the Gulf, pushing global markets into a state of high volatility. With the Strait of Hormuz seeing record-low tanker traffic (down roughly 85%), Brent crude is currently testing the $115 per barrel mark. Bahrain now joins Qatar and Kuwait in a growing list of regional producers forced to halt exports due to the escalating conflict.

What this means for the market

The Sitra refinery is a vital “swing” producer for refined products like jet fuel and diesel. Its absence from the market, even temporarily, is expected to spike fuel prices across Europe and Asia.