Oil Surges Near $110 as Israel, US Strike Iran’s South Pars Gas Field
Global oil prices jumped sharply on Wednesday after Israel, in coordination with the United States, struck Iran’s South Pars gas field, the world’s largest natural gas reserve, marking a major escalation in the ongoing conflict.
Brent crude surged more than five per cent to trade close to $110 per barrel, as markets reacted to fears of broader disruptions to energy supplies in the Middle East.
The strike represents the first direct attack on Iran’s upstream oil and gas infrastructure since hostilities began on February 28. Previous incidents had largely targeted facilities and shipping routes in the Gulf region rather than production assets inside Iran.
South Pars, which Iran shares with Qatar, is a cornerstone of global energy supply. While Iran controls one portion of the field, Qatar operates its section, known as the North Field, which accounts for roughly one-fifth of the world’s liquefied natural gas (LNG) exports. Any sustained disruption could therefore have significant implications for global gas markets, particularly in Europe and Asia.
In a swift reaction, Qatar’s Foreign Ministry condemned the strikes, describing them as “a dangerous and irresponsible step” that could further destabilize the region.
Tehran responded with strong warnings of retaliation. Iran’s military joint command issued a statement declaring it would escalate the conflict “in new ways” and released a list of energy facilities it intends to target across the Gulf.
Among the named targets were facilities in Saudi Arabia, the United Arab Emirates and Qatar, including Saudi Aramco’s Samref refinery and Jubail petrochemical complex, as well as the Al Hosn gas field in the UAE.
Energy analysts say the threat of attacks on key oil and gas infrastructure in the Gulf, home to some of the world’s largest producers, has heightened concerns over potential supply disruptions. The region accounts for a significant share of global crude exports, and any sustained escalation could push prices higher in the coming days.
Investors are closely monitoring developments, with traders bracing for further volatility in both oil and gas markets as tensions intensify.