Global energy prices surged on March 20, 2026, after Israel struck a key natural gas facility at the South Pars field in Iran, prompting retaliatory strikes by Iran against energy infrastructure in Qatar, according to reports from Iranian state media and international market analysis.
The attack on South Pars, one of the world’s largest gas fields, marked a significant escalation in the conflict that began on February 28, 2026, with a joint U.S.-Israeli offensive against Iran. Initial strikes had largely focused on political and military targets, with authorities in both countries reportedly aiming to dismantle Iran’s retaliatory capabilities and leadership. However, Wednesday’s strike directly targeted Iran’s energy infrastructure, a move that analysts say has broadened the scope of the conflict and introduced new risks to the global economy.
Iran’s immediate response involved strikes on Qatari facilities across the border, further escalating tensions in the region. The attacks prompted a rapid increase in oil prices, jumping $15 per barrel in a matter of hours. Natural gas prices on the Rotterdam market also saw a substantial increase, rising by 30 percent, according to market reports.
The price increases are already being felt in France, where fuel prices have risen by 40 cents for SP95 gasoline and 60 cents for diesel since late 2025. Some stations are now selling diesel for over €2.20 per liter. The escalating energy costs are raising concerns about the impact on both consumers and businesses.
Although the price of crude oil is largely determined by global market forces, outside the direct control of French authorities, the refining margin – the difference between the price of crude oil and refined products – has also increased. The margin for SP95 has risen by 8 cents, while the margin for diesel has tripled, reflecting a tight market and reduced European refining capacity. The distribution margin, however, has decreased by an average of 7 cents since the beginning of the year.
Taxes also contribute significantly to fuel prices in France, including a fixed consumption tax (TICPE) of €0.68 per liter for SP95 and €0.61 per liter for diesel, as well as a 20% value-added tax (VAT) applied to the price excluding tax and the TICPE itself. The current crisis is estimated to reduce French purchasing power by €27 billion annually.
The U.S. Is responding to the escalating conflict by accelerating the deployment of thousands of Marines and sailors to the Middle East, with the 11th Marine Expeditionary Unit (MEU), comprising at least 2,200 Marines, expected to deploy from San Diego in the coming days. The U.S. Has also reportedly approved an additional $7 billion in arms sales to the United Arab Emirates, according to the Wall Street Journal.
Mojtaba Khamenei, who succeeded his father Ayatollah Ali Khamenei as Iran’s Supreme Leader following his father’s death in the February 28th strikes, issued a statement marking the Persian New Year and Eid al-Fitr, praising the public for their resilience in the face of repeated attacks. More than 2,000 people have been killed across the Middle East, including 13 U.S. Service members and over 1,200 in Iran, according to the Iranian Red Crescent Society.
The conflict began after the United States and Israel launched strikes on Iran on February 28, following weeks of military buildup and threats from former President Trump. The strikes killed Supreme Leader Ayatollah Ali Khamenei, leading to the appointment of his son, Mojtaba Khamenei, as his successor.
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