International fuel prices soared on Thursday as Iran escalated its attacks on oil and gas facilities around the Gulf in retaliation for an Israeli strike on a key Iranian gas field. Iranian missiles hit a Saudi refinery on the Red Sea and set Qatari liquefied natural gas facilities and two Kuwaiti oil refineries ablaze. The strikes followed Israel’s attack on South Pars, the Iranian part of the world’s largest gas field, the previous day.
The United Arab Emirates denounced Iran’s attacks as a “dangerous escalation”. US President Donald Trump said Israel would not attack South Pars again, but warned that if Iran continued striking Qatar’s energy infrastructure, the US would retaliate and “massively blow up the entirety” of the field.
Brent crude oil spiked to as high as US$118 a barrel, up more than 60 per cent since Israel and the United States began the war on February 28 with strikes on Iran. Qatar said firefighters extinguished a blaze at a major LNG facility after it was hit by Iranian missiles, adding that production had already been halted but the latest wave caused “extensive further damage”.
Iran has been striking its Gulf neighbours’ energy facilities since the war began and has made the Strait of Hormuz, through which one-fifth of the world’s oil travels, nearly impassable. Iran and Hezbollah also have been firing drones and missiles at Israel.
US$200 billion for the Iran war
The Defense Department has requested another US$200 billion, according to a senior administration official. The figure comes on top of extra funding already received last year in Trump’s tax cuts bill.
Journalists wounded on air in Lebanon
Two journalists were lightly wounded while reporting near Tyre. Steven Sweeney of Russia Today and cameraman Ali Reda Sbeiti were injured when a strike fell metres away during a live broadcast.
US military operations
Gen Dan Caine said American forces struck more than 90 targets on Iran’s Kharg Island, including air defences and naval facilities. Defense Secretary Pete Hegseth added that Iran’s 11 submarines are “gone”.
Casualties and warnings
A pregnant woman was among four killed in an Iranian missile attack on the West Bank. Four Palestinians were also killed in Gaza City in separate Israeli strikes. Sirens sounded repeatedly in Jerusalem and central Israel as Iran launched salvos of missiles.
International reactions
Russia’s nuclear chief warned of radiation risks if Iran’s Bushehr reactor is hit. Shell PLC said it is assessing damage at Qatar’s Pearl GTL plant. French President Emmanuel Macron called for a truce, while German Chancellor Friedrich Merz said weapons must “fall silent” before Germany could commit to any mission. Arab League chief Ahmed Aboul Gheit condemned Iran’s attacks on Gulf energy facilities.
Energy impact
Global oil and gas prices surged. Brent crude rose to nearly US$114 per barrel, up from under US$73 before the war. The European TTF benchmark for natural gas traded 24 per cent higher.
Further developments
Kuwait reported fires at two refineries after drone attacks. Saudi Arabia said a drone hit its SAMREF refinery in Yanbu. Cathay Pacific suspended flights to Dubai and Riyadh through April. Satellite images showed damage at Al Dhafra Air Base in the UAE. A ship was set ablaze off Khor Fakkan.
Regional diplomacy
Egypt’s foreign minister called for Iran to halt attacks. Austria’s chancellor said Europe would not be “blackmailed” into joining the fight. China criticised Israel’s authorisation of targeted killings. Australia’s prime minister condemned Iran’s reprisals. Gulf Arab states issued a joint statement denouncing Iranian strikes.
Domestic developments in Iran
Iran announced the execution of three men detained in January protests. Foreign Minister Abbas Araghchi lashed out at Macron’s comments. Mobile alerts sounded in Dubai and Bahrain as Iranian missiles targeted the region.
AP
