A massive explosion at the Valero Port Arthur Refinery sent shockwaves through the US energy sector on Monday.
According to Gulf News, local authorities ordered residents in surrounding areas to shelter indoors as thick black smoke rose over East Texas.
The blast comes at a critical time, as oil prices surge amid the West Asia conflict. The refinery, one of America’s largest, processes around 435,000 barrels per day and is now under emergency lockdown.
Officials said the explosion threatens to take the refinery’s full capacity offline, at a moment when US President Donald Trump is negotiating with Tehran amid tensions in the region.
Brent crude rose 3.7 percent to $103.60 per barrel, with the Strait of Hormuz under an effective 90 percent blockade by the IRGC, cutting 8 million barrels from daily global supply.
The explosion occurred roughly 90 miles east of Houston. Emergency management officials immediately issued a shelter-in-place alert.
“To ensure the safety of all residents in the vicinity and in light of the recent explosion at the Valero refinery, an immediate shelter in place is ordered,” the alert read, according to Gulf News.
Valero confirmed that a fire broke out in one of the refinery’s processing units.
“Currently, there is a fire in a unit at Valero’s Port Arthur, Texas refinery. All personnel have been accounted for,” the company said in a statement, adding that worker safety remains its top priority.
Gulf News reported that no official confirmation has been given regarding casualties.
Local media footage showed large flames and thick black smoke rising from the site. Residents in nearby neighbourhoods reported hearing a loud explosion that shook windows and buildings.
The cause of the blast has not yet been determined, and authorities have not indicated how long the shelter-in-place order will remain in effect.
The Texas-based Port Arthur refinery employs nearly 800 workers and processes heavy sour crude oil and other feedstocks into gasoline, diesel, and jet fuel, according to Valero. The facility handles around 435,000 barrels per day, making it one of the largest refining hubs in the US.
