Iran’s fury was ignited on Wednesday when Israeli forces struck the South Pars gasfield — the world’s largest natural gas reserve — prompting the Revolutionary Guards to name Gulf energy sites for imminent retaliation. Saudi Arabia, the UAE, and Qatar were all told their energy infrastructure was in danger. Oil prices surged toward $110 a barrel as the conflict entered its most economically threatening phase yet.
South Pars is shared between Iran and Qatar and sits at the center of Iran’s gas export economy. The Israeli strike — reportedly carried out with US authorization — was the first time Iranian fossil fuel production had been targeted in the conflict. Both countries had carefully avoided such a move, recognizing that striking Iranian energy infrastructure could set off a chain reaction with devastating consequences for global energy supply.
Iran’s state broadcaster identified Saudi Arabia’s Samref refinery and Jubail complex, the UAE’s al-Hosn gasfield, and Qatar’s Mesaieed and Ras Laffan facilities as targets to be struck within hours. Evacuation orders were issued publicly. Governor Eskandar Pasalar of Asaluyeh condemned the strike as “political suicide” and declared that Iran was now engaged in a full-scale economic war.
Oil prices rose nearly 5% to $108.60 a barrel, while European gas benchmarks surged more than 7.5%. Gulf oil exports had already fallen 60% from pre-war levels, battered by drone strikes and Iran’s blockade of the Strait of Hormuz. Iran had continued to export its own crude through the strait while effectively preventing Gulf neighbors from doing so. The threat of further strikes deepened concerns about the viability of global energy supply chains.
Qatar’s government spokesperson Majid al-Ansari warned that targeting energy infrastructure was a threat to global energy security and the region’s populations. The international community watched with growing concern as Iran’s retaliatory clock ran down. The conflict had entered a phase where energy and military warfare had become inseparable — and where the consequences for the global economy could be profound and long-lasting.