Iran Strikes Qatar Gas Hub as Energy War Escalates, Markets Surge

Iran sharply escalated its response in the Gulf on Thursday, launching missile strikes against key energy infrastructure in neighboring states after its own gas facilities were hit yesterday. Qatari authorities confirmed that ballistic missiles targeted the Ras Laffan Industrial City, the country’s main gas hub, triggering large fires and causing serious damage to liquefied natural gas installations. QatarEnergy reported that several LNG facilities were struck in two separate waves, with the second attack early Thursday igniting “sizeable fires” and worsening the destruction. Emergency teams were deployed immediately, and while the damage was described as extensive, no casualties were reported. Civil defense units later said all fires had been brought under control, with cooling operations continuing at the site.

The attacks follow an earlier strike on Iran’s South Pars gas field, part of the world’s largest known gas reserve, which Tehran blames on Israel. In response, Iranian officials issued direct warnings that any further attacks on their energy sector would trigger continued strikes on the energy infrastructure of Israel and its regional partners. The Revolutionary Guards said such operations would not stop until opposing energy systems were “completely destroyed,” signaling a widening focus on critical economic targets across the Gulf.

The United States reacted with a stark warning. President Donald Trump said Washington would respond decisively if Iran targeted Qatar again, threatening to destroy the South Pars field with overwhelming force. He stressed that the earlier strike on the Iranian facility had been carried out by Israel without US or Qatari involvement, while also indicating that future escalation could bring direct American action, with or without allied support.

The developments have sent shockwaves through global energy markets. Brent crude prices surged by more than 5 percent to over 112 dollars per barrel, while US crude also posted gains. In Europe, benchmark gas prices jumped sharply, rising by up to 35 percent amid fears of supply disruptions linked to attacks on Qatar’s LNG infrastructure, a critical supplier to global markets.

Regional tensions have also intensified. Saudi Arabia signaled it may consider military action in response to repeated Iranian strikes, warning that pressure tactics would not succeed and could instead provoke a stronger response. At the same time, French President Emmanuel Macron called for an immediate halt to attacks on civilian infrastructure, particularly energy and water facilities, urging restraint after consultations with leaders in Washington and Doha.

The escalation comes against the backdrop of nearly three weeks of war, during which Israel has targeted senior Iranian figures, including intelligence chief Esmail Khatib, while continuing strikes in Lebanon. Tehran has responded with missile and drone attacks across the region. The expanding focus on energy infrastructure now raises concerns about a broader economic and security crisis, as both sides appear increasingly willing to hit strategic assets beyond traditional military targets.