Oil prices leapt to nearly $110 a barrel after Iranian media reported an airstrike hitting a facility on the world's largest natural gas field. The Brent crude oil benchmark hit $109.91 a barrel just after 14:30 GMT, more than 5% higher than Tuesday's prices, remaining above $108. This surge followed reports from Tasnim, a news agency affiliated with the Islamic Revolutionary Guard Corps (IRGC), stating that Iran's petrochemical complex on the South Pars gas field had been struck.
In addition to oil, the benchmark UK gas price also jumped by 6% to 143.53p a therm before falling back below the 140p mark. However, while prices surged, they remained below earlier highs seen during the ongoing conflict.
Iran's oil ministry reported that a fire at the petrochemical complex was under control, but the extent of the damage remains unclear. Iran's military has warned it will take decisive action in response to the strike on its energy infrastructure.
In a statement, the military emphasized that they would launch a powerful counterattack if their energy infrastructures were attacked, and they consider targeting the fuel and gas infrastructures of adversaries legitimate. In response to the attack, Iran has also suspended gas flow to Iraq to bolster domestic supplies.
Most of Iran's gas supply (94%) is used domestically, although Qatar operates facilities on the same gas field. Qatar, a major player in liquefied natural gas production, halted operations earlier in March due to the conflict. The situation has raised significant concerns regarding global energy security, as highlighted by Qatar's foreign ministry spokesman.
In addition to oil, the benchmark UK gas price also jumped by 6% to 143.53p a therm before falling back below the 140p mark. However, while prices surged, they remained below earlier highs seen during the ongoing conflict.
Iran's oil ministry reported that a fire at the petrochemical complex was under control, but the extent of the damage remains unclear. Iran's military has warned it will take decisive action in response to the strike on its energy infrastructure.
In a statement, the military emphasized that they would launch a powerful counterattack if their energy infrastructures were attacked, and they consider targeting the fuel and gas infrastructures of adversaries legitimate. In response to the attack, Iran has also suspended gas flow to Iraq to bolster domestic supplies.
Most of Iran's gas supply (94%) is used domestically, although Qatar operates facilities on the same gas field. Qatar, a major player in liquefied natural gas production, halted operations earlier in March due to the conflict. The situation has raised significant concerns regarding global energy security, as highlighted by Qatar's foreign ministry spokesman.
