Donald Trump threatened to “massively blow up” Iran’s South Pars gasfield if Tehran continues to attack energy facilities in Qatar and other Gulf states, escalating tensions in a region already on high alert following a series of retaliatory strikes.
The former US president’s warning, delivered via social media on Wednesday night, came after Israel reportedly attacked the South Pars gasfield, prompting Iran to retaliate with attacks on Qatar’s Ras Laffan LNG facility. The strikes have sent shockwaves through energy markets, with European gas prices jumping 35 per cent on Thursday and oil prices climbing to nearly $110 a barrel, according to reports.
Qatar’s state-owned gas company has indicated that the damage to the Ras Laffan facility could take three to five years to fully repair, potentially forcing the cancellation of long-term LNG contracts with Italy, Belgium, and China. This disruption raises concerns about Europe’s energy security, with approximately 8 per cent of the EU’s LNG supply originating from Qatar.
The attacks on energy infrastructure have prompted a flurry of diplomatic activity. At a summit of EU leaders on Thursday, European Commission president Ursula von der Leyen announced plans for “temporary, tailored and targeted” measures to mitigate the impact of high energy costs. These measures include increased flexibility for national governments to subsidise energy-intensive industries and a proposal to lower taxes on electricity.
Irish Tánaiste Simon Harris described the conflict as “deeply concerning” from both a humanitarian and economic perspective, stating that the government would soon finalise an intervention to assist citizens with rising fuel costs. He also expressed concern about the broader economic impact and the potential for inflationary challenges, adding that he was in constant contact with European counterparts ahead of a Eurogroup meeting next week.
France’s president Emmanuel Macron has called for direct talks between the US and Iran to halt attacks on the energy supply chain, warning that the destruction of regional oil and gas production facilities would have a “much more lasting impact” than a temporary closure of the Strait of Hormuz. Iran had previously disrupted shipping through the Strait, a critical route for approximately 20 per cent of the world’s oil, and gas.
A joint statement from Germany, France, the UK, Italy, the Netherlands, and Japan called for an “immediate” moratorium on bombing oil and gas installations and offered to contribute to efforts to ensure the safe passage of ships through the Strait of Hormuz. Trump, however, has previously criticised European and Nato allies for refusing to participate in a US plan to deploy warships to the Gulf to reopen the shipping lane.
Beyond the immediate economic consequences, European leaders are also preparing for potential migratory pressures. Italy and Denmark have privately advocated for the EU to develop “emergency” measures to manage potential asylum seeker and refugee flows, similar to those experienced in 2015. A letter from the Danish and Italian prime ministers to other EU leaders proposed toughening border controls and establishing an “emergency brake” mechanism to respond to “sudden large-scale migratory movements”. The EU leaders agreed to “mobilise its diplomatic, legal, operational and financial tools to prevent uncontrolled migratory movements” into the bloc.
Meanwhile, in Lebanon, the death toll from Israel’s offensive against Hizbullah militants has reached 1,001, according to the Lebanese health ministry.
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