Iran Attacks Oil Facilities, Escalating Gulf Conflict & Oil Prices
Escalating Tensions: Iran Attacks Fuel Sites as U.S. Faces Concerns of Widening War
Iranian attacks on oil and gas facilities around the Persian Gulf on Thursday have raised significant concerns about a potential escalation of the conflict, threatening global energy supplies. The attacks prompted a strong rebuke from President Trump regarding Israel’s earlier strike on a key Iranian gas field, and fueled anxieties among U.S. Allies in the region. Saudi Arabia warned it might respond with force if Iran continues its attacks, while oil prices surged once more.
Trump stated that Israel acted “out of anger” when it attacked Iran’s South Pars field, the world’s largest natural gas field, calling it “extremely important, and valuable.” He indicated a desire to prevent further attacks, but also threatened a massive response should Iran continue targeting liquefied natural gas facilities in Qatar. Defense Secretary Pete Hegseth maintained the administration’s position that the war is proceeding as planned and that the U.S. Is not at risk of entering another prolonged Middle East conflict.
Confirmed Attacks and Damage
QatarEnergy reported “extensive damage” after the Ras Laffan Industrial City, a major energy hub, was hit by Iranian missiles. Saudi Arabia announced it intercepted and destroyed four ballistic missiles aimed at Riyadh and thwarted a drone attack on a gas facility in the eastern part of the country. In Kuwait, fires broke out at the Mina Al-Ahmadi and Mina Abdullah refineries following drone attacks. Israel also reported facing multiple waves of Iranian attacks targeting various parts of the country.
These attacks follow Iran’s vow to retaliate against Israel for striking its facilities in the Pars gas field on Wednesday, an escalation that sent oil prices soaring. Iran accused Israel of the strike, which directly impacted its energy infrastructure. The price of Brent crude oil briefly rose to $119 a barrel, a more than 60% increase since the start of the conflict, before settling back to $110.
Regional Reactions and Warnings
Saudi Foreign Minister Prince Faisal bin Farhan expressed that trust between Saudi Arabia and Iran had been “completely shattered,” and stated that Riyadh “reserves the right to take military action if necessary.” This warning came after a meeting of foreign ministers in Riyadh, where the attacks were described as a “dangerous escalation.” Arab League Secretary-General Ahmed Aboul Gheit echoed this sentiment, calling the attacks “reckless.”
French President Emmanuel Macron condemned Iran’s attacks and urged negotiations, while Omani Foreign Minister Badr Albusaidi described the war as a “catastrophe” and criticized the U.S. For allowing itself to be drawn into the conflict. Albusaidi suggested that Iran’s retaliation against Gulf states was an “inevitable” response to the escalating situation.
U.S. Response and Economic Measures
The U.S. Is considering a range of responses, including potential deployment of troops to the region, though Trump denied any such plans. The Pentagon has requested an additional $200 billion from Congress for the war effort, which officials defend as necessary to maintain military preparedness. Treasury Secretary Scott Bessent announced the possibility of lifting sanctions on 140 million barrels of Iranian oil currently in transit, aiming to stabilize the oil market and curb price spikes. The administration is also considering another release from the U.S. Strategic Petroleum Reserve, though reserves are currently at their lowest levels since the 1980s.
Lifting sanctions would provide a significant financial boost to Iran, enabling it to fund its ongoing conflict. Iran has, in turn, threatened further retaliation if its energy infrastructure is attacked again, warning of “complete destruction” of enemy energy facilities and those of its allies. The Soufan Center, a New York-based reckon tank, noted that Israel’s strike on South Pars represented a “clear expansion of the conflict,” targeting Iran’s electricity supplies and aiming to make living conditions for civilians “intolerable.”
The Strait of Hormuz and Global Energy Supply
The attacks have further threatened global energy supplies, already strained by Iranian attacks on ships in the Strait of Hormuz, a critical waterway through which approximately 20% of the world’s oil passes. The situation is particularly concerning for countries like Japan and members of the European Union, which rely heavily on the Strait of Hormuz for their energy needs. Trump acknowledged the potential for assistance from allies in safeguarding the strait, particularly those dependent on its energy flow.
The ongoing conflict and the potential for further escalation pose a significant challenge to regional stability and global energy markets. The situation remains fluid, with the potential for further attacks and retaliatory measures.
Rector reported from Colorado and Bulos from Beirut. Times staff writer Gavin J. Quinton in Washington contributed to this report.