Energy markets around the world felt the tremors of a major new escalation on Wednesday as Iran threatened to strike oil and gas facilities in Saudi Arabia, the UAE, and Qatar following an Israeli attack on the South Pars gasfield. The Revolutionary Guards named specific targets and warned workers and residents to evacuate immediately. Oil prices leaped toward $110 a barrel as the scope of the threat became clear.
The South Pars gasfield, which Iran shares with Qatar, is the centerpiece of the country’s gas economy and the largest natural gas reserve on Earth. Israeli forces struck it for the first time in the conflict, reportedly with US authorization. The attack ended a months-long restraint on targeting Iran’s fossil fuel sector — a restraint that had been carefully maintained to limit the war’s impact on world energy supplies.
Iran’s state media identified the Samref refinery and Jubail complex in Saudi Arabia, al-Hosn gasfield in the UAE, and Mesaieed and Ras Laffan in Qatar as imminent targets. Evacuation orders were broadcast publicly, intensifying the sense of urgency. The governor of Asaluyeh, the Iranian province housing South Pars, described the situation as “political suicide” by the US and Israel and declared the start of a full-scale economic war.
Brent crude surged nearly 5%, reaching $108.60 per barrel, while Europe’s gas benchmark rose more than 7.5% to over €55.50 per megawatt hour. These moves compounded damage already done to global energy markets: Gulf oil exports had fallen 60% from pre-war levels, choked by drone strikes and Iran’s Strait of Hormuz blockade. Iran’s own crude exports had continued flowing while it blocked those of its neighbors.
Qatar’s government spokesperson called for protection of energy infrastructure, warning that attacks on such sites constituted a threat to global energy security and regional stability. The breadth of Iran’s threats and the precision of the targets named left little room for ambiguity. As markets closed, traders and governments alike were bracing for what could be the most economically consequential night the Gulf had seen in decades.
