Iran threatens Gulf energy facilities after Israeli attack on its largest gasfield

Iran’s military has announced plans to strike energy infrastructure in the Gulf following Israeli missile attacks on its major gasfield, marking the first direct assault on its fossil fuel sector since the conflict began. The strikes, targeting the South Pars field—a shared resource with Qatar—were reported in Israeli media as having received U.S. approval. This development signals a significant intensification of the war, as the U.S. and Israel have previously focused on avoiding damage to Iran’s oil and gas operations.

The attack on Iran’s central gas infrastructure has triggered fears of broader disruptions to global energy markets. With oil prices nearing $110 a barrel and the Strait of Hormuz under blockade, concerns over supply chain instability have risen. State media outlined potential targets, including Saudi Arabia’s Samref refinery and Jubail petrochemical complex, the UAE’s al-Hosn gasfield, Qatar’s Mesaieed petrochemical complex and Ras Laffan refinery, as well as other key facilities in the region.

“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 stated.

Iran’s governor of Asaluyeh, Eskandar Pasalar, denounced the U.S.-Israeli escalation as “political suicide,” calling it a shift toward “a full-scale economic war.” Meanwhile, a Qatari government official, Majid al-Ansari, emphasized that targeting energy infrastructure poses a threat to global energy security and regional stability.

Following the strikes, the international oil benchmark surged by 5% to $108.60 a barrel, while Europe’s gas benchmark rose over 7.5% to €55.50 per megawatt hour. The third week of the war saw Iranian attacks on the UAE’s Shah gasfield, alongside drone strikes on Iraq’s Majnoon oilfield and the UAE’s Fujairah port and storage hub. Daily oil exports from the Gulf have plummeted by at least 60% compared to prewar levels, forcing neighboring states to reduce production due to capacity constraints.

Despite the damage, Iran’s own hydrocarbon infrastructure has remained largely untouched, allowing it to continue shipping crude through the Strait of Hormuz without interruption. This has enabled the country to maintain its strategic leverage over global markets, even as oil prices reached $116 a barrel for the first time since May 2022.