DUBAI, March 18 (Reuters) – Facilities belonging to Iran’s oil industry in South Pars and Asaluyeh were attacked on Wednesday, Iranian state media said, prompting Tehran to warn that it would target energy installations across Saudi Arabia, the United Arab Emirates and Qatar.
Oil prices jumped on the news, with Brent crude futures gaining more than 6% to a session high just shy of $110 per barrel. Analysts have warned that any attack in South Pars would raise the possibility of retaliatory attacks by Iran on Gulf energy facilities including those belonging to oil majors in Qatar.
Qatar called it an Israeli attack without mentioning any U.S. role. The Qatari foreign ministry spokesperson called it a “dangerous and irresponsible” escalation that put global energy security at risk.
The Israeli military did not immediately respond to a request for comment.
Qatar has fully shut its liquefied natural gas production because of the war, cutting 20% of the world’s LNG supplies, and any damage to facilities could extend the outage beyond May.
Tasnim news agency said the attacks targeted petrochemical facilities in South Pars and added the extent of the damage was not yet clear.
Following the attack, Iranian gas flows to Iraq were halted as Iran diverted its gas domestically, a senior Iraqi official told Reuters. Tehran supplies between a third and 40% of Iraq’s gas and power needs.
EVACUATION WARNINGS
Iran’s Revolutionary Guards issued evacuation orders for Saudi Arabia’s Samref Refinery and Jubail Petrochemical Complex, the UAE’s Al Hosn Gas Field, and Qatar’s Mesaieed Petrochemical Complex, Mesaieed Holding Company and Ras Laffan Refinery, saying they would be targeted by strikes “in the coming hours”, Iranian state media reported.
Iran’s offshore South Pars gas field makes up around a third of the world’s largest reservoir of natural gas. Iran shares the reservoir with major exporter Qatar.
Sanctions and technical constraints have meant most gas Tehran produces from South Pars is for domestic use. Iran’s gas production totalled 276 billion cubic meters in 2024, with 94% consumed in Iran, according to data by the Gas Exporting Countries Forum.
The U.S.-Israeli war on Iran and Tehran’s attacks on Gulf neighbours have disrupted oil and natural gas exports from the Middle East and forced production stoppages.
(Reporting by Stephanie Kelly, Dubai Newsroom, Ahmed Elimam; Additional reporting by Alexander Cornwell; Writing by Stephanie KellyEditing by Nia Williams, Kirsten Donovan)
