Oil spikes after Iran says world’s largest gas fields hit in strikes, vows to attack Gulf oil production in retaliation

An Israeli airstrike hit Iran’s South Pars gas field – the world’s largest – on Wednesday, triggering a spike in energy prices as Tehran unleashed a wave of attacks on oil infrastructure across the region.

Multiple explosions rocked the South Pars gas field, which is jointly operated with Qatar — damaging Iran’s Asaluyeh refinery and halting production at two of the field’s refineries, which normally produce about 100 million cubic meters of gas a day, according to state media.

Qatar’s North Field complex in Iran, which oversees half of the South Pars gas field, also sustained damage, prompting Doha to slam the strike as a targeted attack.

“The Israeli targeting of facilities linked to Iran’s South Pars field, an extension of Qatar’s North Field, is a dangerous & irresponsible step amid the current military escalation in the region,” said Majed Al Ansari, a spokesman for the Qatari Foreign Ministry.

Following the attack, Iran’s central military command directly warned that a severe response to the strike was imminent, instructing civilians to evacuate energy facilities in Saudi Arabia, the United Arab Emirates and Qatar.

Late Wednesday, attacks were reported in all three Gulf nations. 

Qatar’s state oil giant, QatarEnergy, said it suffered “extensive damage” at its Ras Laffan Industrial City after Iranian missiles hit the fuel plant in a retaliatory attack.

“Emergency response teams were deployed immediately to contain the resulting fires,” the world’s second-largest liquefied natural gas exporter said in a statement. ⁠

The UAE also suspended operations at two Abu Dhabi natural gas sites  – the Habshan gas facilities and the Bab field – following the Iranian strikes. 

Brent crude oil futures soared to nearly $111 per barrel in the wake of the strikes, after opening on Wednesday at around $101.

While the Trump administration has previously opposed strikes on Iran’s oil facilities, Israeli officials told Axios that the attack on South Pars was coordinated with the US.  

Israeli and American officials have yet to publicly comment on the strike. 

Asaluyeh’s storage tanks and operational areas were specifically affected, according to Fars News Agency. 

It remains unclear what the full extent of the damage was, but no deaths have been reported so far. 

The attack on South Pars comes after Qatar was already forced to suspend production on its main liquefied natural gas facility due to Iranian drone strikes. 

Qatari spokesman Al Ansari warned that continued strikes on energy facilities in the Middle East would wreak havoc on the world’s economy.

“Targeting energy infrastructure constitutes a threat to global energy security, as well as to the peoples of the region & its environment,” he said.