In the second half of March, Israel launched strikes on Iran's strategic gas facilities, notably the South Pars field, which accounts for about 75% of the country’s gas extraction. As a result, 20% of Iran’s gas infrastructure was disabled, and exports to Iraq and Turkey were halted.
In retaliation, Iran targeted Qatari gas assets, including the Pearl GTL plant — the world’s largest synthetic diesel producer. Restoration of Pearl GTL is estimated at $8 billion and may take 3–4 years. Following a force majeure declaration, Qatar, which supplies 20% of global LNG, saw exports plummet and European and Asian energy prices soar.
Beyond facility destruction, the Strait of Hormuz—an essential transport artery—was blocked. Countries not aligned with Iran faced shipping restrictions, pushing up insurance premiums and halting commercial tanker movements for most vessels.
The crisis also disrupted sectors such as helium production, vital for microchips, worsened fertilizer shortages, and led to inflationary pressures through rising fuel and logistics costs. Economists warn of an impending stagflation shock and risk of global recession.
Diplomatic and political repercussions affected Gulf monarchies, notably the UAE and Saudi Arabia, which have reconsidered their multivector policies in the face of new threats. The region no longer features a “safe energy enclave”; every strategic facility is now a potential military target.
The world now enters an era of energy fragmentation, where supply security is more important than price. The energy order that endured since the Cold War has now collapsed.
