Facilities belonging to Iran’s oil industry in South Pars and Ashaluja were attacked today, the semi-official Tasnim news agency reported, while Iran’s Revolutionary Guards issued evacuation warnings for oil facilities in Saudi Arabia, the United Arab Emirates and Qatar.
A senior Iraqi official told Reuters that the flow of Iranian gas into Iraq stopped after the attack. Tehran supplies between one third and 40% of Iraq’s gas and energy needs. Iran diverted its gas internally after the attack, the official added. According to Israeli media, the attack was carried out by Israel with the consent of the US. The Israeli military did not respond to requests for comment at this time.
The oil price shot up on hearing the news, with Brent oil futures rising more than 4% to an intraday high of over $108 a barrel. Analysts have warned that any attack in South Pars would raise the possibility of retaliatory attacks by Iran on energy facilities in the Gulf, including those owned by major oil companies in Qatar.
Qatar has been quick to halt liquefied natural gas (LNG) production because of the war, cutting 20% of global LNG supply, and any damage to facilities could lead to an extension of the shutdown beyond May.
Tasnim said the attacks targeted petrochemical facilities in South Pars, adding that the extent of the damage is not yet clear.
Iran produces natural gas from the offshore South Pars gas field, which it shares with Qatar.
Sanctions and technical restrictions have meant that most of the gas Tehran produces from South Pars is for domestic use. Iran’s gas production totaled 276 billion cubic meters in 2024, with 94% consumed in Iran, according to data from the Gas Exporting Countries Forum.
The US and Israeli war in Iran and Tehran’s attacks on neighbouring Gulf countries have caused problems for Middle Eastern oil and gas exports and have led to production disruptions.
