Oil prices surged sharply on Monday, with Brent crude jumping nearly 5.5% to trade around $75 per barrel, following Israel’s unprecedented strike on Iran’s South Pars gas field amid escalating regional conflict. This attack marks the first time Israel has targeted Iran’s critical oil and gas infrastructure, including the world’s largest natural gas reserve shared with Qatar, causing a fire and partial suspension of gas production at Phase 14 of South Pars, which produces about two-thirds of Iran’s gas used domestically.
The strikes also hit a major fuel depot and oil refinery near Tehran, intensifying fears of supply disruptions in a region vital to global energy markets. The South Pars field alone holds approximately 1,260 trillion cubic feet of gas, nearly 20% of the world’s known reserves, making damage to this site highly significant for global energy security.
Iran’s gas exports are limited by sanctions, so most of the gas is consumed domestically, but the attack threatens Iran’s energy stability and could ripple through global markets.
The conflict escalated after Israel killed Iranian military and nuclear figures, prompting Iran to retaliate with missile and drone strikes on Israeli cities. Both sides have suffered casualties, with Iranian reports citing at least 80 dead and 800 injured, while Israel reports 10 dead and over 180 injured. The ongoing hostilities have raised concerns about the potential closure of the Strait of Hormuz, a critical chokepoint through which about 20% of the world’s oil passes, which would severely disrupt global oil supplies and drive prices even higher.
Oil markets had already seen a 13% rise last week amid the initial attacks on Iran’s nuclear and military sites, and the targeting of energy infrastructure is expected to prolong volatility and inflationary pressures worldwide. Analysts warn that the conflict could extend further, with both nations threatening additional strikes, keeping global energy prices on edge as the region remains unstable.
In summary, the recent Israeli strikes on Iran’s South Pars gas field and other energy facilities have triggered a sharp surge in oil prices, reflecting fears of supply disruptions from one of the world’s most critical energy regions amid escalating military conflict
