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Time of India
12 hours ago
- Business
- Time of India
Israel just hit Iran's wallet: Has World War 3 entered the energy stage with attack on Iran's South Pars gas field?
Iran was forced to shut part of its operations at the South Pars gas field after a suspected Israeli drone strike ignited a fire at one of its critical processing units on Saturday. The incident caused the suspension of 12 million cubic metres of gas production. The blaze, which broke out at Phase 14 of the site, was eventually brought under control, according to Iran's oil ministry. This marks Israel's first known strike on Iran's oil and gas infrastructure. Until now, military operations under Operation Rising Lion had focused on Iran's nuclear and defence assets. Saturday's hit signals a shift—economic targets are now in play. 'This is probably the most important attack on oil and gas infrastructure since Abqaiq,' said Jorge Leon of Rystad Energy , referencing the 2019 drone attack on Saudi facilities that rattled global oil markets. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now — krassenstein (@krassenstein) Why South Pars matters The South Pars field lies offshore in Iran's southern Bushehr province. It stretches across the Persian Gulf, where Iran shares it with Qatar. The Qatari portion is known as the North Field and supplies a vast share of the world's liquefied natural gas ( LNG ). Live Events This gas field is vital. It holds nearly half of Iran's gas reserves and accounts for around 66% of its total gas output. Iran, the third-largest gas producer globally after the United States and Russia, produces about 275 billion cubic metres (bcm) of gas annually—6.5% of global supply. Due to heavy international sanctions, most of this output stays within Iran. The country relies on it to keep homes warm, factories running, and its economy breathing. In contrast, Qatar exports 77 million tonnes of LNG annually from the same field, with support from global firms like Shell and ExxonMobil. The strike puts more than just Iranian energy at risk. It sends a warning that other vital installations may be next. Kharg Island, responsible for about 90% of Iran's oil exports, and the Strait of Hormuz, through which 21% of global LNG and around 14 million barrels of crude oil flow daily, are now considered potential targets. — AstorAaron (@AstorAaron) WWIII: Analysts warn of wider consequences Energy experts say this is not just about gas—it's about sending a message. The battlefield has expanded. 'This is probably the most important attack on oil and gas infrastructure since Abqaiq,' said Jorge Leon of Rystad Energy, referring to the 2019 attack that crippled Saudi oil processing for weeks. Others say the strike signals that energy assets are now legitimate wartime targets. 'This is a warning shot that Israel is willing to hit Iranian energy infrastructure if Israeli civilians are targeted,' Richard Bronze, head of geopolitics at Energy Aspects, told The New York Times. The ripple effect could be felt far beyond Iran's borders. South Pars is jointly operated with Qatar, a top global LNG exporter. Disruption in this shared field threatens energy stability in Asia and Europe. Also Read: Has the stealthy F-35 met its match? Iran claims capture of Israeli pilots amid reports of third jet shoot-down Ripple effects for global markets Oil prices surged by as much as 14% on Friday after the first Israeli strikes on Iranian territory, closing 7% higher at $73 (around ₹6,200) per barrel. Analysts expect prices to jump again as markets open on Monday. While South Pars gas is mainly for Iran's domestic use, the symbolism of the strike—and the risk of it spreading—is what's rattling markets. 'This raises the possibility that any further escalation could follow an 'energy-for-energy' logic,' said Ben Hoff, head of commodity research at Societe Generale . 'An attack on one side's oil infrastructure might invite a retaliatory strike on the other's.' Iranian President Masoud Pezeshkian has vowed a strong retaliation, raising concerns that regional hostilities will deepen. As missiles from both sides continue to criss-cross the sky, markets remain volatile and nervous. Also Read: 'This is how World War III begins': As missiles rain on Tel Aviv, analysts say the next strike could drag the world in What's at stake for Iran? Iran's energy system was already strained. The country is in the midst of one of its worst power crises in decades, with rolling blackouts and gas shortages crippling daily life and industry. The Iran Chamber of Commerce has pegged the daily economic loss from outages at nearly $250 million. 'Attacking Iran's energy infrastructure will be a disaster because repairing them will be costly and take time,' said Abdollah Babakhani, an Iranian energy expert based in Germany. Sanctions, ageing equipment, and lack of investment have left the sector fragile. A prolonged disruption could further batter the economy and stoke public unrest. Could the Gulf become a wider war zone? Tehran believes this strike goes beyond battlefield strategy—it is an economic war. 'Iran's Foreign Minister Abbas Araqchi called the Israeli attack on South Pars 'blatant aggression and a very dangerous act',' according to state media. He warned the strike could 'drag the conflict into the Persian Gulf region' and potentially involve the entire region—and beyond. 'Israel's attack would never have happened without the U.S. green light and support,' Araqchi added. He accused Washington of attempting to derail ongoing nuclear talks. 'It is necessary for the United States to condemn Israeli strikes on Iranian nuclear facilities if they want to prove their goodwill.' A blow to Iran's already strained energy sector The attack couldn't have come at a worse time for Iran. The country is in the grip of one of its worst energy crises in decades. Blackouts have become routine. According to the Iran Chamber of Commerce, these outages cost the economy around $250 million per day. Homes and factories face power cuts. Energy rationing is already affecting industry, transport, and public services. Sanctions and outdated infrastructure have made upgrades nearly impossible. Repairs to damaged infrastructure, especially in offshore fields like South Pars, are costly and slow. 'Attacking Iran's energy infrastructure will be a disaster because repairing them will be costly and take time,' said Abdollah Babakhani, an Iranian energy expert based in Germany. Red lines and retaliation Until now, Israel had largely targeted Iranian military and nuclear assets. But this strike changes the game. By hitting the country's energy backbone, Israel is signalling it is willing to go further. Iran's President Masoud Pezeshkian has vowed stronger retaliation. Experts warn that Israel's own energy infrastructure could be next. And any new strikes near chokepoints like Kharg Island or the Strait of Hormuz could ignite a full-blown crisis. These areas are vital arteries for global oil—14 million barrels a day pass through the strait alone. If they're blocked, the world will feel it at the pump. China, sanctions and strategic blowback The geopolitical risk goes beyond Iran and Israel. China, Iran's biggest oil buyer, could see its supplies hit if more infrastructure is damaged. Despite U.S. sanctions, Chinese private refiners continue to import Iranian oil. Some have been blacklisted by the U.S. Treasury. Any large-scale disruption could impact China's energy security—and strain already tense relations with Washington. Meanwhile, some analysts believe OPEC nations like Saudi Arabia may try to balance the market by ramping up output. But that would take time. And prices are already swinging. The Israeli strike on South Pars isn't just a military flashpoint—it's a strike at Iran's economic heart. It pushes a high-stakes regional conflict into energy warfare. Markets are jittery. Gulf nations are watching nervously. And with both sides vowing escalation, there's no clear off-ramp. What started as a targeted conflict now risks boiling over into a broader energy and economic crisis—with consequences far beyond the Middle East.
News18
15 hours ago
- Business
- News18
Iran Denies Israel's Attack On World's Largest Gas Field: Why South Pars Is Key To Global Energy Ops
Last Updated: Iran shares the South Pars gas field with Qatar. Striking it would mark a major escalation in the conflict, which had already pushed oil prices up 9% on Friday Contrary to media reports, Iran oil ministry on Sunday denied Israel's attack on their oil and gas sector, claiming the Isfahan refinery operations continue without disruption. The semi-official Tasnim news agency had on Saturday reported that Iran had partially suspended gas production at the world's biggest gas field after an Israeli strike caused fire at South Pars gas field. Israel launched an air offensive against Iran on Friday, killing commanders and scientists and bombing nuclear sites in a stated bid to stop Tehran building an atomic weapon. Iran shares the South Pars gas field with Qatar. Striking it would mark a major escalation in the conflict, which had already pushed oil prices up 9% on Friday even though Israel spared Iran's oil and gas on the first day of its attacks. Operations at the Isfahan refinery continue without disruption, Iran's oil ministry told state media on Sunday, denying reports of an incident or attack against the facility.— Iran International English (@IranIntl_En) June 15, 2025 The South Pars field is located offshore in Iran's southern Bushehr province and is responsible for the lion's share of gas production in Iran, the world's third largest gas producer after the United States and Russia. The fire broke out in one of the four units of Phase 14 of South Pars, halting production of 12 million cubic metres of gas, Tasnim had said. Iran produces around 275 billion cubic meters (bcm) of gas per year or some 6.5% of global gas output, and consumes it domestically as it cannot export gas due to sanctions. Iran shares the field with Qatar, which calls the field North Field. Qatar produces 77 million tonnes of liquefied gas from the field with the help of global majors such as Exxon and Shell and supplies the gas to Europe and Asia. Israel had so far restricted its strikes to military and nuclear installations. The South Pars gas field attack could change the dynamics. '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. THE TIMING Israeli strikes have come at a bad timing for Iran, which is grappling with nationwide protests over chronic water and power shortages. Blackouts have cost industries $20 billion annually, worsened by IRGC-linked Bitcoin mining diverting electricity from civilians. Hyperinflation has exceeded 50% for seven consecutive years, with the currency collapsing to 828,500 rials against one USD. Critical shortages of medicine, fuel, and electricity have eroded public trust. Protesters in 155 cities have been chanting 'No Light, No Water, No Future'. Cement prices have surged 200% in three months, and unpaid bread subsidies have triggered baker strikes. IRGC-controlled conglomerates like Setad and Khatam Base dominate over 50% of the GDP. Public anger is fuelled by scandals, including a $3.7 billion fraud by Debsh Tea. Over 50% of voters boycotted recent elections, showing widespread disillusionment. Movements like 'Women, Life, Freedom' from 2022 persist despite crackdowns. WILL KHARG, HORMUZ BE NEXT? There are fears that Israel could attack Iran's main oil export terminal Kharg Island and the Strait of Hormuz, through which 21 per cent of the world's LNG and 14 million barrels of crude oil daily pass. Earlier, there were fears that Iran would block Hormuz supply line. '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. IMPACT ON US, CHINA In the 1970s, Iran accounted for 10 per cent of the world's oil production. However, after the 1979 revolution, the US crippled the Iranian economy by announcing sweeping sanctions on Tehran. The United States tightened sanctions in 2018 after Trump exited a nuclear accord during his first presidential term. Iran's oil exports fell to nearly zero for some months. China is the biggest importer of Iranian oil. It says it does not recognise sanctions against its trade partners. The main buyers of Iranian oil are Chinese private refiners, some of whom have recently been placed in the US Treasury sanctions list. top videos View all If Israel attacks Iran's oil and gas production, it may also impact China, the United States' biggest strategic and economic rival. Analysts, however, say Saudi Arabia and other OPEC members could compensate for the drop of Iranian supply by using their spare capacity to pump more. About the Author News Desk The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : Israel Iran tension Location : New Delhi, India, India First Published: June 15, 2025, 14:59 IST News explainers Iran Denies Israel's Attack On World's Largest Gas Field: Why South Pars Is Key To Global Energy Ops
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First Post
15 hours ago
- Business
- First Post
Israel attacks world's largest gas field in Iran: What will be the impact?
Iran has been forced to partially shut operations at the South Pars gas field after a fire caused by an Israeli air strike. The South Pars gas field is the biggest in the world. But what do we know about it? What happened? What will be the impact? read more This frame grab taken from Islamic Republic of Iran Broadcasting (IRIB) shows a refinery in Iran's South Pars gas field after it was struck by an Israeli drone in Kangan. AP Israel has hit the largest gas field in the world. Iran has been forced to partially shut operations at the South Pars gas field after a fire caused by an Israeli air strike. The South Pars gas field is the biggest in the world. But what do we know about the field? What happened? What will be the impact? Let's take a closer look What happened? First, let's take a brief look at the South Pars gas field. The South Pars gas field is in Iran's southern province of Bushehr. STORY CONTINUES BELOW THIS AD Located in the middle of the Gulf, it is jointly owned by Iran and Qatar (which calls it the North Dome). It spans 9700 square kilometres of which 3,700 square kilometers belongs to Iran. It comprises an oil field and a processing plant. It is thought to hold over 51 trillion cubic meters of natural gas. It holds around 48 per cent of Iran's natural gas reserves. It is responsible for most of Iran's natural gas production – which stands behind only the United States and Russia. A fire resulted as a result of the strike, according to Iranian authorities. People look at fire burning at South Pars gas field, in Tonbak, Bushehr Province, Iran, in this screen grab from a handout video released on June 14, 2025. Reuters The blaze, which occurred in one of the four units of Phase 14 of South Pars, has now been tamped down. It stopped production of 12 million cubic metres of gas. However, the National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate. Iran produces around 275 billion cubic meters (bcm) of gas per year – around 6.5 per cent of global gas output – all of which is consumed domestically due to export restrictions. STORY CONTINUES BELOW THIS AD What will be the impact? This was Israel's first direct attack on Iran's oil and gas infrastructure. It marks a significant escalation in the conflict between the two nations. Analysts are worried about the possible fallout. 'This is probably the most important attack on oil and gas infrastructure since Abqaiq,' Jorge Leon, an analyst at Rystad Energy, talking about the 2019 attack on Saudi Arabian oil fields, told Bloomberg. 'This is a warning shot that Israel is willing to hit Iranian energy infrastructure if Israeli civilians are targeted, ' Richard Bronze, head of geopolitics at Energy Aspects, told The New York Times. Oil prices had already surged 14 per cent on Friday after Israel attacked Iran. The price of oil eventually settled seven per cent higher – at $73 (Rs 6,200 per barrel). This fresh attack could push oil prices even higher from tomorrow (June 16). Experts also fear the conflict in West Asia could disrupt the flow of oil to the rest of the world. Iran, which is part of Organisation of the Petroleum Exporting Countries (OPEC), currently produces around 3.3 million barrels per day (bpd). STORY CONTINUES BELOW THIS AD It exports over 2 million bpd of oil and fuel. 'Israeli action has so far avoided Iranian energy infrastructure, including Kharg Island, the terminal responsible for an estimated 90 per cent of Iran's crude oil exports,' said Ben Hoff, head of commodity research at Societe Generale. 'This raises the possibility that any further escalation could follow an 'energy-for-energy' logic where an attack on one side's oil infrastructure might invite a retaliatory strike on the other's,' Hoff said. With inputs from agencies
Hindustan Times
18 hours ago
- Business
- Hindustan Times
Israel strikes Iran's gas fields: Why is South Pars indispensable for Tehran?
Tel Aviv and Tehran's military conflict escalated on Saturday as the Israeli army struck the world's biggest gas field in Iran, threatening the latter's energy security, which is highly dependent on the domestic oil and gas production sector. Iran's South Pars gas field, which it shares with Qatar, was on fire after Israel's precision strikes. The fire was extinguished. However, the attack shows that Israel will go for Iran's economic backbone if the conflict escalates further. The South Pars field is located offshore in Iran's southern Bushehr province. Iran is the world's third-largest gas producer after the US and Russia. It produces around 275 billion cubic meters (bcm) of gas per year, or some 6.5% of global gas output. However, because of the US sanctions on exports, it is forced to consume the fuel domestically. It shares the field with Qatar, which produces 77 million tonnes of liquefied gas; it supplies the gas to several nations in Europe and Asia. The attack can potentially disturb the global oil pricing. The attack heightens the risk to oil infrastructure in Iran, OPEC's third-biggest producer, and to shipments from elsewhere in the region. South Pars provides roughly two-thirds of the country's supplies. 'It's going to be pretty significant,' Richard Bronze, head of geopolitics at consultant Energy Aspects Ltd., said of Saturday's attacks. 'We appear to be in an escalatory cycle,' and there will be 'questions about whether Israel is going to target more Iranian energy infrastructure,' he added. Iran has been facing an energy crisis for a long time, with some areas facing the worst power outages in decades. The Iran Chamber of Commerce, Industries, Mines and Agriculture estimated that these blackouts cost the cippled economy about $250 million a day. 'This is a significant escalation,' said Jorge Leon, an analyst at Rystad Energy A/S who previously worked at the OPEC secretariat, said of the onslaught on Saturday.'This is probably the most important attack on oil and gas infrastructure since Abqaiq,' Leon said, referring to the 2019 strike that briefly crippled one of Saudi Arabia's key oil-processing plants. Also read: Iran Israel war news live updates: 'We can easily get a deal done, end this bloody conflict' says Trump amid strikes In the 1970s, Iran's oil production was at its peak, with the nation accounting for 10 per cent of the world's output at the time. However, after the 1979 revolution, the US crippled the Iranian economy by announcing sweeping sanctions on Tehran. The United States tightened sanctions in 2018 after Trump exited a nuclear accord during his first presidential term. Iran's oil exports fell to nearly zero for some months. China is the biggest importer of Iranian oil. It says it does not recognise sanctions against its trade partners. The main buyers of Iranian oil are Chinese private refiners, some of whom have recently been placed in the US Treasury sanctions list. If Israel attacks Iran's oil and gas production, it may also impact China, the United States' biggest strategic and economic rival. Analysts, however, say Saudi Arabia and other OPEC members could compensate for the drop of Iranian supply by using their spare capacity to pump more. With inputs from Bloomberg, Reuters
NDTV
19 hours ago
- Business
- NDTV
Israel Bombed World's Largest Gas Field In Iran. Why It Is A Big Deal
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.
