June 18, 2026 [Oil Price]- A major Saudi Arabian refinery damaged during the Iran conflict will not return to full operations until early 2027, according to TotalEnergies CEO Patrick Pouyanne, raising fresh concerns about the pace of recovery in global fuel markets even as a U.S.-Iran peace agreement moves forward.

Speaking before France’s National Assembly on Wednesday, Pouyanne said the 460,000-barrel-per-day SATORP refinery in Saudi Arabia is still operating at only 70% capacity after being struck by three drones in April.

“Our Saudi Arabian refinery underwent damage by three drone strikes. It’s currently running at about 70% capacity and probably won’t be fully repaired until after this year is over,” Pouyanne told lawmakers.

TotalEnergies’ comments are some of the most concrete about the extent of damage to energy infrastructure across the region.

Pouyanne warned that the reopening of the Strait of Hormuz following the U.S.-Iran peace framework would not immediately resolve supply pressures because several refineries in the region remain damaged.

The SATORP refinery, a joint venture between TotalEnergies and Saudi Aramco, is among the largest and most sophisticated refining facilities in the Middle East. The complex plays an important role in supplying transportation fuels to international markets.

Energy traders have closely monitored the facility since the April attacks, which targeted critical oil and refining infrastructure across the Gulf region. While crude oil and LNG prices have retreated following the peace agreement, refining capacity losses remain a potential source of volatility for fuel markets.

Pouyanne’s remarks came during a parliamentary hearing that also examined proposals for a windfall tax on energy companies in France, following a similar move by Poland on Monday. The TotalEnergies chief argued that the company had already absorbed costs by voluntarily capping fuel prices for French motorists during the crisis.