War Reaches the Energy Heartland! Iran and Israel Exchange Strikes on Oil and Gas Facilities, WTI Approaches $100

According to Cailian Finance APP, as Iran and Israel exchange strikes on key Middle Eastern energy facilities, international oil prices have risen in response. This nearly three-week-long conflict continues to shake market nerves.

In Thursday morning trading, WTI crude oil futures rose as much as 3.4%, reaching $98.69 per barrel. Brent crude settled near $107 on Wednesday, and European natural gas benchmark prices surged 6%. Iran launched an attack on Qatar’s main liquefied natural gas (LNG) facilities—one of several energy targets Tehran has promised to strike following the attack on the South Pars gas field.

Since the outbreak of this round of conflict, oil prices have surged approximately 50%. The unrest has caused turmoil across the Middle East—shipping through the Strait of Hormuz has been disrupted, and many oil and gas production facilities have been damaged. However, Iran’s upstream energy industry has largely remained unaffected so far, which has somewhat contained the risk of escalation that could impact long-term supplies.

Reports indicate that U.S. President Donald Trump was aware in advance of Israel’s attack on the South Pars gas field but hoped to avoid further strikes on Iran’s energy infrastructure. Earlier this week, he stated that after targeting Iranian military sites, attacking Iran’s core export hub on Khark Island—home to critical oil infrastructure—was still under consideration.

“The tension in the Strait of Hormuz means Trump cannot simply declare victory and withdraw, because that wouldn’t address the root issues,” said Will Todman, senior researcher at the Center for Strategic and International Studies’ Middle East program. “Many of Trump’s options to pressure Iran could push energy prices higher, including attempts to seize Khark Island or strike Iran’s energy production infrastructure.”

Qatar’s official sources said that after missile attacks on Ras Laffan Industrial City—the world’s largest LNG export facility—the site was “severely damaged.” This location was one of the targets listed by Iran in its previous threats against regional energy facilities, as retaliation for the attack on the South Pars gas field and related infrastructure.

The South Pars gas field is vital for Iran’s domestic market and supplies neighboring Iraq and Turkey. Related oil and petrochemical assets in Asaluyeh have also been targeted.

The UAE announced that its Habbash natural gas facility has suspended operations due to falling debris caused by missile interceptions. According to semi-official Iranian media on Wednesday, LNG assets within Bahrain (which Tehran considers to be aligned with U.S. interests) were hit by intense missile attacks, though the source of the report was not specified.

Meanwhile, Trump has temporarily waived the Jones Act shipping restrictions, which have been in place for a century, to reduce transportation costs for oil, natural gas, and other commodities within the U.S. This is his latest move to curb rising energy prices following the conflict with Iran.

To further control the rising fuel prices, Vice President Pence and other key officials in the Trump administration plan to hold talks with oil industry executives on Thursday.