Iran Conflict Ensnares Energy as Israel Strikes Giant Gas Field
The unfolding Middle East crisis reached Iran’s energy facilities as Israel launched an attack on a giant gas field in the Persian Gulf, threatening further turmoil for markets.
The unfolding Middle East crisis encompassed Iran’s energy facilities as Israel launched an attack on a giant gas field in the Persian Gulf, threatening more chaos for markets. Israel’s strike on Saturday triggered a powerful surge and fire at a gas processing facility linked to Iran’s giant South Pars field. The hit on the onshore Phase 14 processing plant forced the shut down of a production platform at the field, according to a report from the semi-official Tasnim news agency. The targeting of energy possessions represents a new front in the dispute, which appeared on Friday when Israel released a wave of attacks directed at the Islamic Republic’s nuclear program. While the damage to the gas center may be confined to Iran’s domestic energy system, the escalation might nonetheless provoke more swings in oil futures when trading resumes after the weekend. Read: Israel Extends Iran Airstrikes as Nuclear Talks Called Off The attack heightens the risk to oil infrastructure in Iran, OPEC’s third-biggest producer, and to deliveries from in other places in the region. US unrefined prices rose as much as 14% on Friday, before settling near $73 a barrel. “It’s going to be quite substantial,” Richard Bronze, head of geopolitics at expert Energy Aspects Ltd., said of Saturday’s attacks. “We seem in an escalatory cycle,” and there will be “questions about whether Israel is going to target more Iranian energy facilities,” he included. South Pars, the world’s biggest gas field, is shared between Iran and neighboring Qatar, where it’s known as the North Field. Iran’s gas is generally for domestic use and is not extensively exported, with South Pars supplying approximately two-thirds of the nation’s products. The fire at the center at Stage 14 halted production from among its overseas platforms, totaling up to 12 million cubic meters per day, Tasnim reported. Firefighters prevented the blaze from spreading to other units, it stated. A different fire also broke out at the Fajr Jam gas plant, which processes fuel from South Pars along with the Nar and Kangan fields and is among Iran’s largest processing facilities, Tasnim reported. Also read: Oil Market Long Numb to War Risk Challenges Weekend of Worry The strikes might further paralyze Iran’s wobbling energy industry. The country has actually been facing some of the worst power blackouts in years that have hit large swathes of the economy, pressing a country abundant in energy resources even more into crisis. Blackouts cost the economy about $250 million a day, according to price quotes from the Iran Chamber of Commerce, Industries, Mines and Agriculture. “Israel is trying to find financial targets, but a minimum of in this stage attempting to restrict the effect and the ripple effects for global markets” to avoid alienating allies, Bronze said. A main cause wasn’t provided for the blaze at Fajr Jam, however initial assessments indicated hostile drones, Tasnim reported. Iran has actually developed a huge network of gas-processing and chemical plants onshore around the port of Assaluyeh on the country’s southern coast. The facilities linked to the overseas production sites are also essential for export of condensate, a light oil-like liquid generally produced with gas. Iran generally ships condensate to China. Iran exports some gas to Iraq and has also delivered to Turkey in the past, however the nation has never ever been able to secure the investment required to complete liquefied gas terminals that would allow it to commonly export the fuel. “This is a significant escalation,” said Jorge Leon, an expert at Rystad Energy A/S who previously worked at the OPEC secretariat, stated of the onslaught on Saturday. “This is most likely the most important attack on oil and gas facilities since Abqaiq,” Leon said, describing the 2019 strike that briefly maimed one of Saudi Arabia’s key oil-processing plants. © 2025 Bloomberg L.P. This post was created from an automated news agency feed without adjustments to text.
The unfolding Middle East crisis extended to Iran’s energy facilities as Israel launched an attack on a giant gas field in the Persian Gulf, threatening further turmoil for markets. Israel’s strike on Saturday activated a powerful surge and fire at a natural gas processing center linked to Iran’s huge South Pars field. While the damage to the gas center may be confined to Iran’s domestic energy system, the escalation may however provoke additional swings in oil futures when trading resumes after the weekend. Check out: Israel Extends Iran Airstrikes as Nuclear Talks Called Off The attack increases the risk to oil infrastructure in Iran, OPEC’s third-biggest producer, and to deliveries from in other places in the area. Iran exports some gas to Iraq and has likewise delivered to Turkey in the past, but the country has never ever been able to secure the financial investment required to finish liquefied natural gas terminals that would allow it to widely export the fuel.
