UPDATE: Israel strikes Iran's South Pars gas field threatening domestic energy supplies while Iran retaliates with attacks on Gulf energy infrastructure, sending oil above $110 and gas prices up 6%.
Israel struck Iran's South Pars gas field Wednesday, the world's largest natural gas reserve and a critical source of domestic energy for Iran. The attack set facilities near Asaluyeh ablaze and directly threatens Iran's electricity supply, with 80% of the country's power generation relying on natural gas from this field. Iran's oil ministry reported the fire was under control but the extent of damage remains unclear.
Iran responded with a sweeping assault on Gulf energy infrastructure. Iranian missiles struck Qatar's Ras Laffan LNG facility causing extensive damage, hit Kuwait's Mina Al-Ahmadi refinery sparking fires, and forced the shutdown of gas facilities in the UAE. Ships were hit off Qatar and the UAE as Iranian attacks intensified, with missile alert sirens sounding across multiple Gulf nations. Qatar, Saudi Arabia and the UAE all condemned the strikes, with Saudi Arabia's top diplomat saying trust has been "completely shattered."
Oil prices surged above $110 per barrel in morning trading, up more than 50% since the war began February 28. UK natural gas prices jumped 6% before falling back slightly. President Trump warned Iran that continued attacks on Qatar's infrastructure would prompt the US to "massively blow up the entirety" of South Pars, though he said he preferred to avoid that level of destruction. The White House suspended the Jones Act for 60 days to allow non-US ships to transport fuel between American ports, attempting to ease domestic shipping costs as energy prices climb.
Editor’s rationale — Major escalation in active Middle East conflict with direct institutional impacts on global energy markets and U.S. strategic interests; widespread geographic scope across Gulf region affecting critical infrastructure; long-term durability due to supply chain disruption implications; primary source reporting from official statements and military confirmations, though some details remain developing.