The Middle East war entered a more dangerous phase on its 20th day as Iran expanded its attacks on strategic energy infrastructure in Saudi Arabia, Qatar, Kuwait, and the United Arab Emirates. The move was in retaliation for Israel’s attack on Iran’s South Pars gas field, which has now crippled electricity supplies and industrial activity in the country.
Global energy markets reacted in panic as Brent crude prices jumped 10% to $119 a barrel, while natural gas prices in Europe doubled from pre-war levels. Disruptions in the still-closed Strait of Hormuz have disrupted the flow of 20% of the world’s oil and LNG supplies, triggering the largest supply crunch in history.
President Donald Trump has tried to defuse the situation by urging Iran to remain calm, but at the same time he has issued a stark warning. Trump has threatened to destroy the entire South Pars gas field if Iran continues to target assets belonging to US allies, especially Qatar.
Domestically in the US, a rise in gasoline prices to $3.88 a gallon has forced the Trump administration to take emergency measures, including waiving a century-old shipping mandate to reduce energy logistics costs. Vice President JD Vance described the hike as a “temporary disruption,” but political pressure is mounting ahead of the November elections.
With the death toll exceeding 4,100 across the region, the international community fears the war could drag the global economy into a deep recession due to extreme energy inflation.
