Global energy crisis soon? As Israel targets Iran's South Pars gas field, oil prices may rise further to $200–$300 per barrel, warns Iraqi Minister. Here's what happened in Middle East conflict
The ongoing tension between Israel and Iran is raising fears of a
global energy crisis
. Iraq's foreign minister has warned that oil prices could rise sharply if the situation escalates, especially if vital energy routes like the
Strait of Hormuz
are blocked.
Oil Price Could Surge
Iraq's Deputy Prime Minister and Foreign Minister Fuad Hussein said that oil prices could increase to $200–$300 per barrel. He discussed this with German Foreign Minister Johann Wadephul. Hussein said that if the Strait of Hormuz is closed, oil exports could fall, affecting Iraq and other producers, an INA news agency report said.
Impact on Global Energy Supply
Hussein said that the closing of the Strait of Hormuz could remove five million barrels of oil per day from the market. Most of this oil comes from the Persian Gulf and Iraq. Such a disruption could cause serious economic effects, including higher inflation in Europe.
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Warning on Regional Instability
Hussein also warned that the Israel-Iran conflict might create inflation and economic problems for both producing and importing countries. Iraq, as a producer, could face issues if exports are delayed or stopped.
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Iraq Calls for International Response
The Iraqi minister said that Israeli military actions in Iran violate international law and regional sovereignty. He called on the global community to condemn these actions. He stressed that continued conflict could harm regional and global stability.
Israeli Strike Hits South Pars Gas Field
Iran had to halt gas production at South Pars after an Israeli airstrike caused a fire. Phase 14 of the gas field was hit, stopping 12 million cubic metres of daily production. This was the first Israeli strike on Iran's energy infrastructure.
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South Pars Gas Field's Strategic Role
The South Pars field is shared by Iran and Qatar. It provides two-thirds of Iran's gas and is used for power, heating and industry. Iran produces around 275 bcm of gas yearly, mainly for domestic use. A smaller portion is exported to Iraq.
Broader Energy Risks
Qatar exports gas from the same field. An attack here signals economic targets are now part of the conflict. Oil prices rose 14% after Israel's initial strike. Analysts warn more attacks could affect Qatar's LNG operations, disrupting supplies further.
Escalation May Deepen Crisis
If key energy points like Kharg Island or the Strait of Hormuz are hit, oil and gas prices may increase sharply. Iran's domestic energy crisis is already deepening due to gas shortages and power cuts. The latest strike worsens this issue and may raise global prices.
FAQs
Why could oil prices rise to $300 per barrel?
Oil prices could rise due to the Israel-Iran conflict disrupting exports from the Persian Gulf and closing key trade routes like the Strait of Hormuz.
What is the importance of the
South Pars gas field
?
South Pars supplies two-thirds of Iran's gas. A strike there affects domestic supply, signals economic warfare, and raises risks for energy security worldwide.
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