Oil and Gas in Turmoil: Impact of Iran-Israel Conflict on Energy Infrastructure

The ongoing military strikes between Iran and Israel have intensified concerns over potential disruptions in the oil and gas sector across the region. Critical infrastructure, like the South Pars gas field, suffered an attack that temporarily halted production. Simultaneously, the Haifa oil refinery was forced to shut down after sustaining damage.

South Pars stands as the world's largest natural gas reserve, partially shared with Qatar, thus making it a significant component in global energy discussions. Recent clashes have cast a shadow over Iranian oil exports, which have recently reached their highest levels since 2018. Current geopolitical tensions are expected to impact market dynamics as countries like Saudi Arabia prepare to balance any reduction in supplies.

In response to the attacks, authorities are working to stabilize affected installations. Despite U.S. sanctions, Iranian exports maintain a steady flow, supported by continued demand from China, thereby revealing a complex geopolitical landscape intertwined with energy interests.

(With inputs from agencies.)