Oil Prices Surge Following Airstrike on Iranian Gas Facility
Oil prices surged to nearly $110 a barrel after Iranian media reported an airstrike on a facility located on the world’s largest natural gas field.
The Brent crude oil benchmark reached $109.91 a barrel shortly after 14:30 GMT, marking an increase of more than 5% compared to prices on Tuesday. The price remained above $108.
This increase came after Tasnim, a news agency affiliated with the Islamic Revolutionary Guard Corps (IRGC), reported that Iran’s petrochemical complex on the South Pars gas field had been struck.
In addition, the benchmark UK gas price rose by 6% to 143.53 pence per therm before retreating below the 140p level.
Despite the spikes in both oil and gas prices, they remained below the peaks observed earlier in the ongoing conflict. Oil prices had reached $116.78 a barrel on 9 March, while UK gas prices peaked at 162.55p per therm on 3 March.
Fire at Petrochemical Complex and Military Response
According to Tasnim, Iran’s oil ministry stated that a fire at the petrochemical complex was under control as of Wednesday afternoon. However, the extent of the damage to the facility was not yet clear.
Iran’s military issued a warning indicating it would take "decisive action" in response to the strike on its energy infrastructure.
"As previously warned, if the fuel, energy, gas, and economic infrastructures of our country are attacked by the American-Zionist enemy, in addition to a powerful counterattack against the enemy, we will severely strike the origin of that aggression as well," the military said in a statement published by Tasnim.
"We consider targeting the fuel, energy, and gas infrastructures of the countries of origin legitimate and will retaliate strongly at the earliest opportunity."
Impact on Gas Supply and Regional Responses
In reaction to the attack, Iran has suspended the flow of gas to Iraq to bolster domestic supplies, a senior Iraqi official told .
Data from the Gas Exporting Countries Forum indicates that 94% of Iran’s gas supply is consumed domestically.
It is important to note that Qatar also operates facilities on the same gas field, which it refers to as the North Dome.
Qatar, responsible for producing one-fifth of the world’s liquefied natural gas (LNG), had previously halted production earlier in March due to the conflict.
Majed Al Ansari, a spokesman for Qatar’s foreign ministry, commented on the situation, stating:
"Strikes against energy infrastructure constitute a threat to global energy security."
