Israeli Strikes Target Iranian Energy Infrastructure, Raising Regional Tensions

In a dramatic escalation, Israel has launched strikes against vital Iranian oil and gas facilities, marking the first such attacks in decades of animosity and sparking fears of a broader conflict with global market implications.

Energy Sites Hit

On Saturday evening, Iran’s Ministry of Petroleum confirmed that Israeli forces struck a pivotal fuel depot. Also, a major refinery in Tehran was ablaze, with emergency responders battling the flames at both sites. Production has been partially suspended at South Pars, the largest gas field worldwide, shared with Qatar, after an Israeli attack caused a fire there on Saturday.

BREAKING: Israel has struck Iranian energy facilities, including a fuel depot and a refinery, escalating tensions between the two nations. pic.twitter.com/XgYwZ9r5qJ

— World News (@worldnews) May 12, 2025

The recent exchange began on Friday with Israeli attacks on Iranian military and nuclear sites, resulting in the assassination of key military officials and scientists. Israel Katz, Defense Minister of Israel, warned of grave consequences if Iran retaliated, stating, Tehran will burn.

These attacks could disrupt Middle Eastern oil supplies, potentially causing worldwide fuel price spikes. According to the U.S. Energy Information Administration, Iran holds the world’s second-largest natural gas reserves and the third-largest crude oil reserves, underscoring the significance of these targets. The Strait of Hormuz, a critical shipping route for about 20% of the world’s oil consumption, may be closed by Iran, which could cause further price hikes (EIA, 2024).

Significant Facilities Targeted

The Shahran oil depot in Tehran, one of the city’s major fuel storage and distribution hubs, with a capacity of approximately 260 million liters, was struck. The Tehran Refinery, a large, state-owned facility in the Shahr-e Rey district, is also under threat. The offshore South Pars gasfield in the Gulf, which contains an estimated 1,260 trillion cubic feet of recoverable gas, had production halted due to the attacks.

Market Uncertainty and Regional Outlook

Alan Eyre, a distinguished diplomatic fellow at the Middle East Institute, believes that Israel may be attempting to push the U.S. into a more active role. He added, Iran does not have many allies in the international community – and even if it did, Israel has shown that it is spectacularly unwilling to listen to international opinion.