(Bloomberg) – Iran has warned that oil and gas infrastructure across the Persian Gulf could become “legitimate targets” following a strike on its giant South Pars gas field, escalating concerns over regional supply disruptions and global energy market volatility.
Facilities in Qatar, Saudi Arabia and the United Arab Emirates are now at heightened risk, according to Iranian state-linked media, as the conflict widens beyond Iran’s borders and increasingly threatens key hydrocarbon-producing regions.
The warning follows an Israeli strike on the South Pars field, one of the world’s largest natural gas developments and a cornerstone of global LNG supply. The field is shared between Iran and Qatar, making it a critical asset for both domestic consumption and export markets.
Energy infrastructure across the Gulf has largely been spared from direct damage during the early stages of the conflict. However, the latest escalation signals a potential shift, raising the risk of direct attacks on upstream facilities, processing hubs and export terminals.
Regional energy flows are already under strain. Shipping through the Strait of Hormuz—through which roughly one-fifth of global oil and gas supply moves—has been severely disrupted, forcing production shut-ins across several Gulf producers and tightening global supply.
Crude prices have surged in response, with Brent rising above $108/bbl, reflecting market concerns that further escalation could lead to prolonged outages or damage to critical infrastructure.
Iran has intensified its use of drones and missiles across the region, targeting both military and energy-linked assets. Recent attacks have included strikes on facilities in the United Arab Emirates and Saudi Arabia, underscoring the expanding geographic scope of the conflict.
Despite the escalation, some Iranian export operations appear to be continuing. Crude loadings at Kharg Island—Iran’s primary export hub—have remained relatively steady, and Iranian-linked vessels have continued to move through the Strait of Hormuz under constrained conditions.
Analysts note that the greatest risk to markets lies in the potential for broader infrastructure disruption. Key assets such as Saudi Arabia’s Abqaiq processing facility, the UAE’s Fujairah export hub and Qatar’s LNG infrastructure are considered critical nodes in global energy supply.
Any sustained damage to these facilities could trigger significant production losses and further tighten already constrained markets.
As the conflict enters its third week, the focus for energy markets is shifting from short-term price volatility to the longer-term risk of supply disruption, particularly if attacks expand to include major upstream or export infrastructure across the Gulf.
Map source: Global Energy Infrastructure.
