Israel Bombed World's Largest Gas Field In Iran. Why It Is A Big Deal

NDTV

9 hours ago

New Delhi:
Iran was forced to partially halt gas production at the world's largest gas field, South Pars, after an Israeli airstrike caused a fire at one of its key processing units on Saturday. The attack, which hit Phase 14 of the offshore site, led to the suspension of 12 million cubic metres of gas output per day. This was Israel's first direct strike on Iran 's oil and gas infrastructure. FOLLOW LIVE UPDATES
About The South Pars Gas Field
The South Pars gas field, located offshore in Iran's Bushehr Province and shared with Qatar (which calls its portion the North Field), is the world's largest natural gas reserve. It provides nearly two-thirds (around 66 per cent) of Iran's domestic gas, which is essential for electricity, heating, and petrochemical production.
Iran is the world's third-largest gas producer after the United States and Russia, generating around 275 billion cubic metres (bcm) annually, about 6.5 per cent of global output.
Due to international sanctions, most of this gas is consumed domestically, though some is exported to countries like Iraq.
Qatar, with help from global energy firms like Shell and ExxonMobil, exports 77 million tonnes of liquefied natural gas (LNG) every year from the same field to Europe and Asia.
Why This Strike Is A Big Deal
New Front In A Dangerous Conflict
Until now, Israeli strikes focused on Iran's military and nuclear assets. But targeting energy infrastructure like South Pars crosses a red line, signalling that economic warfare is now in play.
"This is probably the most important attack on oil and gas infrastructure since Abqaiq," said Jorge Leon, an analyst at Rystad Energy, referencing the 2019 attack on Saudi oil facilities that shook global markets, as per Bloomberg.
Threat to Global Energy Supplies
South Pars is a shared field with Qatar, which is a major global LNG supplier.
Escalation in this region raises fears of attacks on other critical chokepoints like Kharg Island (Iran's main oil export terminal) and the Strait of Hormuz, through which 21 per cent of the world's LNG and 14 million barrels of crude oil daily pass.
"This is a warning shot that Israel is willing to hit Iranian energy infrastructure if Israeli civilians are targeted," said Richard Bronze, head of geopolitics at Energy Aspects, as per The NYT.
Analysts warn that if the conflict continues to escalate, Qatar's energy operations and Israel's own infrastructure could also become targets. Both countries play critical roles in energy exports, and any attack could create ripple effects across Asia, Europe, and global supply chains.
Market Reactions
Oil prices surged as much as 14 per cent on Friday following the initial Israeli strikes, settling around $73 (Rs 7000) per barrel.
Even though South Pars mostly serves domestic needs, its significance lies in the message: energy is now fair game. With OPEC's third-largest producer (Iran) under attack, any future assault on Kharg Island or disruption in the Strait of Hormuz could send oil and gas prices skyrocketing.
The fighting will go on despite international calls for de-escalation, Iranian media reported. Iran's President, Masoud Pezeshkian, has vowed a fiercer retaliation, The NYT reports.
Iran's Fragile Energy Sector
The strike comes as Iran faces one of its worst energy crises in decades. Gas shortages have caused frequent blackouts, costing the economy around $250 million a day, according to the Iran Chamber of Commerce.
The government has been forced to cut power to homes and factories, even before the Israeli strikes. Sanctions and outdated infrastructure have left Iran struggling to meet demand.
"Attacking Iran's energy infrastructure will be a disaster because repairing them will be costly and take time," said Abdollah Babakhani, an Iran energy expert based in Germany.
Global Impact
Though South Pars fuels Iran domestically, its location in the Persian Gulf, a key global energy route, makes it critical. The Israeli strike shows energy assets are now on the battlefield, raising risks for oil markets. Any escalation could spike fuel prices and trigger inflation, especially in energy-dependent regions like Europe and Asia.