War Reaches the Energy Heartland! Iran and Israel Exchange Strikes on Oil and Gas Facilities, WTI Approaches $100

Reuters Finance APP learned that as Iran and Israel exchange strikes on key Middle Eastern energy facilities, international oil prices rose accordingly. This nearly three-week-long conflict has further unsettled the market nerves.

In Thursday morning trading, WTI crude oil futures rose by as much as 3.4%, reaching $98.69 per barrel. Brent crude closed near $107 on Wednesday, and European natural gas benchmark prices surged 6%. Iran launched an attack on Qatar’s main liquefied natural gas sites—one of several energy targets Tehran promised to strike after the South Pars gas field was attacked.

Since the outbreak of this round of conflict, oil prices have surged approximately 50%. The unrest has caused turmoil across the Middle East—shipping through the Strait of Hormuz has been disrupted, and many oil and gas production facilities have been damaged. However, Iran’s upstream energy industry has largely remained unaffected so far, which has somewhat contained the risk of escalation that could impact long-term supplies.

Reports indicate that U.S. President Trump was aware in advance of Israel’s attack on the South Pars gas field but hoped to avoid further strikes on Iran’s energy facilities. Earlier this week, he stated that after targeting Iranian military sites, attacking Iran’s core export hub on Khark Island was still under consideration.

“The tension in the Strait of Hormuz means Trump cannot simply declare victory and withdraw, because that wouldn’t address the root issues,” said Will Todman, senior researcher at the Center for Strategic and International Studies’ Middle East program. “Many of Trump’s options to pressure Iran could push energy prices higher, including attempts to seize Khark Island or strike Iran’s energy production infrastructure.”

Qatar’s official sources said that after missile attacks, the Ras Laffan industrial city—the world’s largest liquefied natural gas export facility—was severely damaged. This site was one of the targets listed by Iran earlier as potential retaliation for attacks on the South Pars gas field and related facilities.

The South Pars gas field is vital for Iran’s domestic market and supplies neighboring Iraq and Turkey. Iran’s oil and petrochemical assets in Asaluyeh were also targeted.

The UAE announced that its Habbash natural gas facility has suspended operations due to falling debris caused by missile interceptions. According to semi-official Iranian media on Wednesday, LNG assets in Bahrain (which Tehran considers to be aligned with U.S. interests) were hit by intense missile attacks, though the source of the information was not specified.

Meanwhile, Trump temporarily waived the Jones Act shipping restrictions, which have been in place for a century, to reduce transportation costs for oil, natural gas, and other commodities within the U.S. This is his latest move to curb rising energy prices following the escalation of conflict with Iran.

To further control the rising fuel prices, Vice President Vance and other key officials in the Trump administration plan to hold talks with oil industry executives on Thursday.

(Edited by: Wang Zhiqiang HF013)

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