Israel’s attack on Iranian facilities associated with the South Pars gas field marked a significant escalation of the war, leading an enraged Iran to attack key energy facilities in its Persian Gulf neighbor and in Israel.
Energy prices were already soaring as the effective closure of the Strait of Hormuz meant oil and gas already produced could not be delivered to intended customers on time. But a new wave of attacks on energy facilities, including those processing South Pars natural gas, is putting further pressure on global supplies.
The double whammy has pushed oil and gas prices even higher and prompted US President Donald Trump to threaten to “blow up” the South Par Islands if Iran doesn’t stop its attacks.
Here’s why the strike against Southpers is so important.
South Pars is part of the world’s largest natural gas reserves located offshore in the Persian Gulf. It is shared between Iran and Qatar, with Qatar calling part of it the North Dome.
The entire gas field contains an estimated 1,800 trillion cubic feet of usable gas, enough to supply global demand for 13 years, according to Reuters.
Natural gas from South Pars is Iran’s largest source of energy supply. The country has previously suffered electricity shortages due to gas supply disruptions, so any loss of production capacity could affect electricity production and home heating.
Qatar has poured billions of dollars into developing its own gas fields and is the world’s second-largest supplier of liquefied natural gas (LNG) after the United States. Previously, when Israeli airstrikes hit infrastructure associated with Southpars in June 2025, officials told CNN that the Qatari side is “a critical source of energy for the United States, Europe, and the world.”
In retaliation for this week’s South Pars attack, Iran attacked Qatar’s Ras Laffan industrial city, causing “severe damage”, according to state-run Qatar Energy.
Ras Laffan is an important energy hub and processes all gas from the North Dome. The plant has been largely closed since early March, but major damage to the facility could delay the restart of production.
About a fifth of the world’s LNG supply comes from Qatar, and almost all of it comes from Ras Laffan, so any delays could have a major impact on LNG prices and supply.
Analysts at leading energy consultancy Wood Mackenzie said on Thursday that the attack “fundamentally changes the global LNG outlook” and that disruptions to global natural gas supplies are now likely to last more than two months.
Arab countries condemned attacks on infrastructure related to Southern Paar. The UAE called this a “serious escalation” that posed a direct threat not only to global energy supplies but also to regional security. Qatar called the South Perth attack a “dangerous and irresponsible step.”
Iran retaliated quickly and with force. Apart from Ras Laffan in Qatar, two oil refineries in Saudi Arabia’s capital Riyadh were attacked. Saudi Arabia later said it “reserves the right to take military action” against Iran if it deems it necessary.
Saudi Arabia’s Defense Ministry said late Thursday that it had intercepted an Iranian missile aimed at Yanbu port, which is a backup port for Saudi oil exports following the blockade of the Strait of Hormuz.
On Thursday, Iranian missiles also struck an Israeli refinery facility in Haifa.
President Trump has threatened to “blow up” South Perth if Iran continues its attacks on energy facilities in Qatar. President Trump said the United States knew “nothing” about Israel’s attack on the South Pars Islands. However, an Israeli official told CNN on Wednesday that the attack was carried out in coordination with the United States.
The attack could cause difficulties for President Trump, who is already struggling to limit the impact of the war on Iran on ordinary Americans’ wallets.
Mohit Kumar, an economist at investment bank Jefferies, said Thursday that the U.S. has been trying to avoid a hit to its energy infrastructure in efforts to “keep oil prices down.”
“However, Israel’s attacks on Iranian gas fields have shown that any red lines are likely to become blurred as the war drags on,” he added in a morning note.
CNN’s Tal Sharef, Nadine Ebrahim, Alena Fayaz, Mohamed Tawfiq, John Tawfigh and Hanna Ziadi contributed reporting.
