"An attack caused a fire at the SABIC plants in Jubail. The sounds of explosions were very loud," the source said, referring to the Saudi Basic Industries Corporation.

Jubail in eastern Saudi Arabia is home to one of the world's largest industrial cities, where steel, gasoline, petrochemicals, lubricating oil and chemical fertilisers are produced.

The source later told AFP that workers in affected areas had been evacuated from their living quarters.

AFP reached out to SABIC for comment.

On Monday, Israel's Defence Minister Israel Katz said his country conducted a "powerful strike" on Iran's largest petrochemical facility in Asaluyeh and Iranian media reported multiple explosions at the site.

The attack on the Jubail industrial area came as Saudi air defence forces engaged a barrage targeting the kingdom's eastern region, with seven ballistic missiles intercepted and destroyed, according to a defence ministry spokesperson.

"Parts of ballistic missile debris fell around power facilities; damage assessment is underway," the ministry said in a post on X.

Early Tuesday, authorities also announced the temporary closure of the major bridge connecting Saudi Arabia and the island nation of Bahrain as a precaution following the issuance of security alerts in the area.

"The movement of vehicles across King Fahd Bridge has been suspended as a precautionary measure," said the General Authority for King Fahd Causeway in a post online.

The causeway is a 25-kilometre (16-mile) series of bridges connecting Saudi Arabia and Bahrain.

Hours later, authorities said the bridge had been reopened to traffic.

Saudi Arabia has accused Iran of regularly targeting its energy installations and infrastructure since Tehran launched a sustained blitz across the Gulf after Israel and the US attacked Iran in late February.