Global oil prices surged sharply after a strike on Iran’s South Pars gasfield triggered fears of wider disruption to energy supplies amid the escalating US-Israeli conflict with Tehran.
Brent crude rose around 5 percent to above $108 per barrel, while US West Texas Intermediate gained to nearly $99, reflecting heightened volatility in global energy markets.
The spike followed reports that Israel targeted facilities linked to South Pars, the world’s largest natural gas field, located off Iran’s southern coast and shared with Qatar.
The development is being seen as a turning point, as the conflict increasingly targets critical energy infrastructure rather than purely military assets.
Iran responded with strong warnings, threatening strikes on oil and gas facilities in Gulf countries including Saudi Arabia, the United Arab Emirates and Qatar, raising fears of a broader regional energy crisis.
The situation escalated further after reports of a fire at Qatar’s Ras Laffan gas facility following a missile attack, though authorities later said the blaze was brought under control.
Analysts say the conflict has already disrupted energy flows from the Middle East, particularly through the Strait of Hormuz — a critical chokepoint that handles about 20 percent of global oil and gas shipments.
Fighting in the region has led to production cuts estimated at up to 7–10 percent of global demand, amplifying concerns over supply shortages and price stability.
“The attack marks a serious escalation, bringing energy infrastructure directly into the conflict zone,” analysts said, warning that prolonged disruption could push prices even higher.
The surge in oil prices has triggered concerns about inflation globally, as higher energy costs feed into transport, manufacturing and consumer goods.
Governments have begun taking contingency measures. The United States announced a temporary waiver of shipping restrictions to ease fuel movement domestically, while also allowing certain oil transactions involving Venezuela to stabilise supply.
Meanwhile, Iraq has resumed some oil exports through alternative routes, offering limited relief to tight markets.
Experts say if the conflict continues to intensify, the world could face sustained high energy prices, with ripple effects across economies, particularly in oil-importing nations.
Markets remain on edge, with investors closely tracking developments in the Gulf region, where further escalation could significantly impact global energy security.
