Persian Gulf Energy Attacks Threaten Global Supply Chain Disruptions

Ongoing military strikes on major oil and gas facilities in the Persian Gulf region are creating concerns about prolonged energy shortages and higher prices worldwide. The attacks have disrupted key infrastructure including the world's largest natural gas field and critical export terminals, forcing production cuts and threatening supplies to Asia.

FRANKFURT, Germany (AP) — Military strikes targeting major energy infrastructure across the Persian Gulf region are sparking concerns about sustained disruptions that could drive up costs for fuel, electricity, technology components, and food supplies worldwide.

Thursday’s Iranian assault on crucial Gulf energy facilities came as payback for Israel’s strike on a natural gas operation that provides the majority of Iran’s gas supply. These retaliatory exchanges have heightened worries that initial war-related price increases could become permanent fixtures in the global economy.

Regional nations have already reduced oil production after Iranian strike threats forced most tanker operations through the Strait of Hormuz to halt, creating a bottleneck with nowhere for the oil to flow. Even when the strait reopens safely for tanker passage, energy supplies will take considerable time to resume normal flow because of the complicated process required to restart refineries and related operations. Any infrastructure damage from continued military action will extend these delays further.

Asian markets are experiencing the most severe impact since the majority of oil and gas passing through the strait heads to that region. Philippine government operations now run just four days weekly with orders to reduce air conditioning usage. Vietnamese authorities have encouraged remote work arrangements.

The disruptions extend beyond petroleum products. Critical materials including helium for semiconductor manufacturing and sulfur for fertilizer production face supply obstacles that could soon create shortages, pushing up prices throughout entire production chains.

Several major facilities have become primary targets in the conflict.

The South Pars natural gas field represents the planet’s largest such reserve, shared between Iran and Qatar, where Qatar calls its section the North Field. South Pars provides most of the natural gas Iran uses for residential heating and power generation.

Israeli forces struck facilities at Asuleyah connected to this field, prompting Iranian warnings of attacks on energy sites throughout other Gulf nations.

Iran already faces periodic electricity production challenges. Losing South Pars gas supplies would create additional hardships for Iranian civilians.

President Donald Trump stated Israel would not target South Pars again, but issued a social media warning that continued Iranian strikes on Qatar’s energy infrastructure would trigger U.S. retaliation to “massively blow up the entirety” of the field.

The planet’s biggest LNG export operation sustained “extensive” damage during Thursday’s Iranian retaliatory strike. State-owned QatarEnergy had already suspended operations following an earlier drone attack.

Ras Laffan processes gas from Qatar’s portion of the shared field with Iran, known as the North Field. The facility cools gas until it becomes liquid for tanker transport, primarily to Asian markets.

This attack severely impacted global energy markets since Qatar supplies 20% of worldwide liquefied natural gas. European consumers are already experiencing significantly higher prices.

This tanker facility has processed nearly all of Iran’s approximately 1.6 million daily barrels of pre-conflict crude exports, with most shipments bound for China. Trump announced U.S. bombing of military positions on Kharg Island March 13 while avoiding oil infrastructure, though he warned those energy facilities could face future attacks.

Some tankers continue loading operations there. Iranian oil appears to be exiting the Gulf through a “dark fleet” of vessels using false location data and hidden ownership to avoid sanctions, according to maritime intelligence firms.

Saudi Aramco’s pipeline connecting the Abqaiq oil processing facility near the Persian Gulf to Yanbu port on the Red Sea bypasses the Hormuz bottleneck, enabling Saudi Arabia to maintain substantial oil exports. However, the pipeline cannot fully compensate for the Hormuz closure. Saudi officials reported strikes on their SAMREF refinery at Yanbu, raising questions about continued oil export capabilities through that port.

This crucial tanker terminal on the Gulf of Oman allows Abu Dhabi to export significant oil volumes through a pipeline from the Habshan oil and gas field without using the Strait of Hormuz. Two strikes have disrupted operations, though activities have reportedly resumed.

After a drone attack, Kuwait Petroleum company reported Thursday that facility fires were extinguished, without detailing damage extent. Refineries are essential to Kuwait’s oil production since wells must shut down without processing destinations. Restarting refineries requires extensive time for safety protocols, keeping wells largely inactive until refineries resume operations.

Salalah hosts an $800 million facility producing liquid petroleum gas for Asian export, commonly used for cooking fuel. Indian restaurants have reduced operating hours and eliminated energy-intensive menu items like curries and fried foods. Located outside the Strait of Hormuz, operations were suspended as a precautionary measure following drone strikes.

This site provides approximately 20% of Abu Dhabi’s natural gas supply and serves as a major sulfur supplier extracted from gas, used in fertilizer and chemical manufacturing. Operations ceased Tuesday due to drone strike damage.