Huge explosion at oil refinery rocks US state as residents told to take shelter

Multiple residents contacted emergency services after hearing an enormous boom that rattled homes throughout the neighbourhood.

The incident occurred at one of the US's largest refining facilities, which converts crude oil into petrol, diesel and aviation fuel.

Police and firefighters were swiftly dispatched to tackle the blaze as thick dark smoke continued to billow from the site.

Officials issued shelter-in-place orders for residents on the western side of Port Arthur, instructing people to stay indoors with windows shut and to heed all guidance from local authorities.

Jefferson County authorities also closed State Highways 82 and 87 as a precautionary measure, while the Texas state transport department advised motorists to steer clear of the area entirely.

In a statement, Valero confirmed: "Currently, there is a fire in a unit at Valero's Port Arthur, Texas refinery. All personnel have been accounted for. Valero's emergency response team is responding and coordinating with local authorities."

The company added: "As always, the safety of our workers is our top priority."

Sheriff Zena Stephens confirmed that no injuries had been reported despite the scale of the incident.

Investigators believe the explosion was triggered by a malfunctioning industrial heater, according to Sheriff Zena Stephens.

The Port Arthur facility ranks among America's most significant refining operations, with the capacity to process between 380,000 and 435,000 barrels of crude daily.

Beyond its conventional fuel production, the site serves as a major manufacturer of renewable diesel, making it a crucial component of the nation's energy infrastructure.

Authorities are now conducting a thorough assessment to establish the precise cause of the blast and evaluate the extent of damage sustained.

Officials must complete this investigation before determining when the refinery can safely resume normal operations.

Any extended shutdown at such a substantial facility could have significant implications for fuel supplies across the country.

The explosion comes at a particularly volatile moment for global energy markets, with the Strait of Hormuz currently closed to shipping traffic.

The strategic waterway normally carries approximately one fifth of the world's oil supplies.

American motorists are already feeling the pinch, with the average price of regular petrol now standing at $3.91 per gallon according to AAA data.

This represents a 25 per cent increase compared to 12 months ago and a sharp 33 per cent jump from just one month prior, before hostilities began in Iran.

The war has all but halted shipments of about one-fifth of the world's oil and liquefied natural gas through the Strait of Hormuz, causing what the International Energy Agency has called the biggest-ever oil supply disruption.

KCM Trade Chief Market Analyst Tim Waterer said: "Today's moderate bounce is just the market finding its footing in the mud.

"Traders are aware that while the missiles are on hold, the Strait of Hormuz is still far from a clear waterway."

Iran on Tuesday sent waves of missiles into Israel. Tehran has dismissed President Trump's talk of negotiations as "fake news."