Iran threatens Gulf energy facilities after Israeli attack on its largest gasfield
Iran threatens Gulf energy facilities after Israeli attack on its largest gasfield
Following Israeli strikes on its primary gas reserve, Iran has vowed to strike energy sites throughout the Gulf in retaliation. The attacks on the South Pars gasfield, shared with Qatar, mark the first deliberate strikes on its fossil fuel production since hostilities commenced. Iran’s Revolutionary Guards announced plans to target several key facilities in Saudi Arabia, the UAE, and Qatar, warning that actions would occur “in the coming hours.”
State media reported that Israeli missiles had hit the gas facilities at South Pars, a critical global energy asset. Israeli outlets suggested the strikes were conducted with U.S. approval. This escalation highlights a shift in U.S.-Israeli military strategy, as they now target Iran’s energy infrastructure directly, potentially triggering broader regional tensions.
“These centres have become direct and legitimate targets and will be targeted in the coming hours. Therefore, all citizens, residents, and employees are requested to immediately leave these areas and move to a safe distance without any delay,” the warning said.
Iranian officials expressed alarm over the situation. Eskandar Pasalar, governor of Asaluyeh in southern Iran, called the U.S.-Israeli escalation “political suicide,” arguing it has shifted the conflict toward a “full-scale economic war.” Meanwhile, a Qatari government spokesperson emphasized that attacks on energy infrastructure pose a threat to global energy security and regional stability.
Energy markets reacted sharply to the news. The international oil benchmark surged by 5%, reaching $108.60 a barrel, while Europe’s gas benchmark climbed over 7.5% to €55.50 per megawatt hour. This reflects growing fears of supply disruptions amid ongoing threats to key Gulf energy hubs.
The third week of the war saw additional strikes, including attacks on the UAE’s Shah natural gasfield and Iran’s drone strikes on Iraq’s Majnoon oilfield. Fujairah, the UAE’s major port and oil storage site, was also hit. These assaults have led to a 60% drop in daily oil exports from the region compared to prewar levels, as pipelines and storage capacity reach limits.
Despite the turmoil, Iran’s own hydrocarbon infrastructure has largely avoided damage. A recent U.S. attack on Kharg Island targeted military assets, leaving oil export facilities intact. Iran has maintained uninterrupted crude shipments through the Strait of Hormuz, even as it threatens to ignite vessels carrying oil from neighboring Gulf states.
Global oil prices climbed toward $116 a barrel last week, the highest since May 2022, as traders factored in the war’s impact on supply chains. The situation underscores the fragility of energy markets and the potential for further volatility if hostilities continue to intensify.
