Iran threatens Gulf energy facilities after Israeli attack on its largest gasfield
Iran threatens Gulf energy facilities after Israeli attack on its largest gasfield
The third week of the conflict saw Iran vow to strike energy assets across the Gulf region in response to Israeli strikes on its South Pars gasfield, the world’s largest natural gas reserve. This marks the first direct attacks on Iran’s fossil fuel production since hostilities began, with Iran’s Revolutionary Guards warning of imminent counterstrikes against Saudi Arabia, the UAE, and Qatar. State media reported that missiles had targeted the gas facilities, prompting Iran to identify key infrastructure in neighboring countries as potential targets.
Israeli media claimed the strikes on Iran’s South Pars field were conducted with U.S. approval, escalating tensions between the U.S. and Israel. These actions have intensified fears of further disruptions to global energy supplies, as the oil price surged to $110 a barrel. Europe’s gas benchmark also rose sharply, climbing over 7.5% to exceed €55.50 per megawatt hour. The attack on Iran’s gas infrastructure highlights a significant shift in military operations, moving from previous restraint to a broader economic conflict.
Targets and Warnings
Iran’s state media listed several facilities as targets, including Saudi Arabia’s Samref refinery and Jubail petrochemical complex, the UAE’s al-Hosn gasfield, Qatar’s Mesaieed petrochemical complex, and the Ras Laffan refinery. A warning issued by Iran urged citizens and employees to evacuate these areas immediately. “These centres have become direct and legitimate targets and will be targeted in the coming hours,” the statement declared.
“The pendulum of war has swung to a full-scale economic war,” said Eskandar Pasalar, governor of Asaluyeh in southern Iran, criticizing the U.S.-Israel alliance as “political suicide.” A Qatari government spokesperson, Majid al-Ansari, emphasized that targeting energy infrastructure poses a risk to global energy security, threatening both regional populations and environmental stability.
Earlier in the war, Iranian drones and missiles had already struck the UAE’s Shah natural gasfield, Iraq’s Majnoon oilfield, and Fujairah, the UAE’s primary port and oil storage hub. Daily oil exports from the Gulf have dropped by at least 60% compared to prewar levels due to the combined effects of strikes and Iran’s control of the Strait of Hormuz. Despite this, Iran has continued to transport crude oil through the strait without interruption, while threatening to ignite vessels carrying fuel from other Gulf states.
The global oil price hit $116 a barrel last week, the highest since May 2022, as traders factored in the ongoing war’s impact on supply chains. This underscores the growing economic pressure on energy markets, with Iran’s strategic moves reshaping regional and international dynamics. The conflict’s escalation now threatens to destabilize the energy sector on a larger scale, raising concerns about long-term consequences for global trade and prices.
