Israel has targeted Iran’s vital energy infrastructure in a recent attack, sparking concerns about the global energy market. The assault on Saturday hit oil storage sites, refineries, and power stations, including the massive South Pars gas field.
The South Pars field, located off Iran’s southern Bushehr province, is a crucial source of natural gas for the country. The field is shared with Qatar, which claims control over part of it. Israeli attacks on the site raised fears that a widening conflict could disrupt Iran’s energy production and supply.
Iran’s reliance on hydrocarbons is significant, with the country holding the world’s third-largest crude oil reserves and producing about 266 billion cubic meters of natural gas in 2023. However, sanctions imposed by Western countries have crippled its economy, leading to soaring inflation and a collapsing currency.
The sanctions, aimed at curbing Iran’s nuclear and ballistic missile programs, have severely impacted its energy exports. The measures have also led to blackouts in the country, as over 95% of Iranian households are connected to gas pipelines. The government has had to impose rolling power blackouts to cope with electricity demand spikes.
A recent surge in crude oil prices has raised concerns about the impact of a widening conflict on global energy markets. If Israel continues to target Iran’s energy facilities, it could trigger a spike in oil and gas prices.
Source: https://www.dw.com/en/iran-israel-attacks-oil-gas-energy-infrastructure-opec/a-72936222