On Thursday, tensions in the Middle East escalated sharply as Iran's Islamic Revolutionary Guard Corps (IRGC) launched a series of retaliatory strikes against energy facilities in the Persian Gulf. The attacks ignited a liquefied natural gas (LNG) terminal in Qatar and impacted refineries in Kuwait, Saudi Arabia, and the UAE, sending global energy prices soaring and pushing the region to the brink of a wider economic catastrophe.
The strikes were a response to a prior Israeli airstrike on Iran's South Pars gas field, the world's largest gas complex, which is jointly managed by Iran and Qatar. Israel allegedly conducted the strike with US backing. The attack on South Pars marked a new phase in the three-week conflict, with both sides explicitly targeting each other's critical energy infrastructure for the first time.
Energy Lifelines in the Region Severely Hit
The consequences of the attacks were immediate and global. Brent crude oil prices surged past $110 per barrel during Thursday's trading session, marking an increase of over 50% since the war began (February 28, when prices were near $70), briefly touching $116 before a slight pullback. European gas benchmark TTF also saw a significant jump of 28%-30%, adding to a doubling of prices in the previous month.
The most strategically significant target was Qatar's Ras Laffan terminal, a major global LNG export hub that typically supplies about 20% of the world's LNG demand. QatarEnergy confirmed the attack caused "widespread damage" and forced the company to halt production. Energy analysis firm Wood Mackenzie noted that if the shutdown lasts longer than two months, it would "fundamentally alter the global gas market landscape." Global LNG supply has already contracted by nearly 20% since QatarEnergy suspended operations earlier this month.
Furthermore, Iran used drones to strike one of Kuwait's largest refineries, Mina Al-Ahmadi, causing a "limited" fire confirmed by Kuwait Petroleum Company. Another drone targeted a refinery in Yanbu on Saudi Arabia's Red Sea coast, a joint venture with ExxonMobil, with damage still under assessment. In a further escalation, Iran has completely halted gas exports to Iraq, exacerbating regional energy crisis concerns.
Tehran has explicitly threatened to strike more Gulf facilities, naming Saudi Arabia's Jubail petrochemical complex, the UAE's Al Hosn gas field, and Qatar's Mesaieed complex as "direct and legitimate targets." The IRGC warned civilians in neighboring Gulf countries to evacuate areas around oil and gas facilities.