Command Palette

Search for a command to run...

Discover

Israel and Iran Strike Gulf Gas Hubs, Pushing Oil Prices Above $114 Barrel

Israel and Iran Strike Gulf Gas Hubs, Pushing Oil Prices Above $114 Barrel
Click to expand

Israeli and Iranian strikes on critical gas infrastructure sent oil and gas prices sharply higher on Thursday, after Israel hit facilities at Iran’s South Pars field and Tehran retaliated against Gulf energy hubs including Qatar’s Ras Laffan, which processes about one‑fifth of global LNG supplies npr +1. Brent crude jumped roughly 6–7% to trade above $114 a barrel, while European gas benchmark prices spiked about 16% intraday npr +1.

Qatar reported “significant” or “extensive” damage at Ras Laffan but said all personnel were accounted for and no casualties had been reported, even as fires burned at the site axios. Iran framed its strikes on Gulf facilities as retaliation for the South Pars attack, while U.S. President Donald Trump said Washington had not been informed in advance of Israel’s strike and warned he would “massively blow up the entirety of the South Pars Gas Field” if Iran hit Qatar again npr +1.

How the Attacks Hit the World’s Largest Gas Hub

Israel’s strike targeted Iranian installations in the South Pars gas field on or about March 18, marking a major escalation because the field is part of the world’s largest natural gas reservoir, shared with Qatar’s North Dome npr +1. Hours later, Iran launched missiles and drones at energy facilities across the Gulf, with confirmed damage at Ras Laffan in Qatar and disruptions at the UAE’s Habshan gas complex; Kuwait and Saudi Arabia reported fires or debris incidents at refineries and ports as they intercepted incoming projectiles npr +1.

Ras Laffan is the centerpiece of Qatar’s LNG industry, handling around 20% of global liquefied natural gas exports, a critical supply line for Europe and Asia npr +2. Qatar’s foreign ministry condemned the Iranian strike as a “blatant” and “dangerous escalation” and expelled Iranian embassy military and security attachés within 24 hours axios. Energy analysts warned that prolonged outages at Ras Laffan or further damage to South Pars could remove substantial volumes of gas from global markets and push prices into an “all bets are off” scenario nytimes.

Markets, Inflation Fears and Europe’s Energy Dilemma

The energy shock rippled quickly through financial markets: Brent briefly neared $119 a barrel, European TTF gas jumped to about €63.7 per megawatt-hour, and U.S. natural gas futures rose around 4% npr +1. European gas prices were already up more than 60% since the U.S.-Israeli campaign against Iran began on February 28, leaving governments scrambling to shield households and industry from another inflation surge npr.

European leaders convened emergency discussions on energy security, while central bankers at the European Central Bank and Bank of England warned that sustained price spikes could complicate plans to ease monetary policy npr. Asian stock markets slid on Thursday as investors priced in the risk of a deeper supply crunch and potential shipping disruptions around the Strait of Hormuz, through which roughly a fifth of the world’s oil and LNG flows nytimes.

The Bigger Picture

The exchange of strikes on South Pars and Ras Laffan underscored how the widening U.S.-Israeli conflict with Iran had moved decisively into the energy domain, turning vital civilian infrastructure into leverage points with global consequences. With Tehran threatening further attacks on Gulf facilities if Israeli operations continue, and Washington vowing massive retaliation for new strikes on Qatar, diplomatic efforts now face the urgent task of containing a confrontation that is already reshaping the world’s fuel supply and inflation outlook npr +1.