EU urges members to start storing winter gas as Iran war causes price surge

Following an alleged Israeli attack on Iran's South Pars gasfield, Iran has threatened to retaliate by striking energy facilities in Saudi Arabia, the UAE, and Qatar. Iranian authorities, via Tasnim news agency, identified specific targets including refineries and petrochemical complexes. The alleged Israeli strike reportedly damaged facilities at the South Pars field, the world's largest gasfield, located off Iran's coast. This escalation follows ongoing strikes by Israel and the US on Iranian targets since February 28, and retaliatory attacks by Iran in the Middle East, raising concerns about the conflict's impact on global energy markets. Qatar's foreign ministry has condemned the attack on the gasfield.

Iran's Pars gas field, a major energy infrastructure site in the Gulf, was struck on Wednesday, marking the first reported attack on Iranian energy infrastructure during the US-Israeli war. The attack, allegedly carried out by Israel with US consent, caused a fire and prompted evacuations. In response, Iran threatened to retaliate with attacks on oil and gas targets throughout the Gulf region. The incident led to a surge in oil prices, with Brent crude rising approximately 5%, and a decline in stock markets. The Pars gas field is the Iranian portion of the world's largest natural gas deposit, shared with Qatar.

Donald Trump has threatened to destroy Iran's South Pars gas field if Tehran retaliates against Qatar following Israeli strikes on the field. This threat marks a potential escalation in the US-Israel conflict with Iran. The conflict has already impacted global energy markets, with Brent crude rising 8% and European gas prices jumping 24%. The war has cost the US an estimated $18 billion within the first six days. Labor rights activist Dolores Huerta has spoken out about abuse within the UFW movement, alongside two women who allege they were victims of grooming and abuse as children.

Following Iranian attacks on Qatari gas facilities amid the US-Israeli war on Iran, the EU is urging member states to begin storing gas for next winter earlier than planned. The attacks, which followed an Israeli strike on an Iranian gas field, have caused a surge in global gas prices and threaten EU storage projections. Energy Commissioner Dan Jorgensen has requested that member states aim for 80% storage capacity, a 10% reduction from the original target, to mitigate price pressures and avoid a rush to fill reserves later in the year. While Asia will be most affected by Qatar's reduced export capacity, Europe faces increased competition for LNG as the conflict disrupts Gulf energy supplies. Natural gas prices in the EU have already risen significantly since the start of the war.

Military attacks on critical infrastructure in Qatar and Iran have triggered a significant energy shock in Europe, causing oil and gas prices to surge to levels not seen since the Russian invasion of Ukraine in 2022. On Thursday, the Dutch TTF natural gas price climbed to its highest level since December 2022, while Brent crude surpassed US$114 per barrel. Jet fuel prices in Europe have also exceeded their peak during the Russia-Ukraine war. Governments across Europe, including in Brussels and Paris, are holding crisis meetings to address the situation. The French Energy Minister attributed the price increases to Europe's dependency on external refining, particularly for diesel fuel. The attacks followed the US and Israel attacking Iran in late February.

Qatar has accused Iran of attacking its natural gas facilities, following a strike on Iran's primary natural gas source the previous day. These incidents have heightened concerns about the stability of energy supplies in the region. As a result of this uncertainty surrounding the war's impact, the price of oil has risen sharply, reaching $114 a barrel. The attacks on energy infrastructure in both Qatar and Iran are contributing to increased volatility in global oil markets. The situation is being closely monitored for further developments and potential disruptions to energy production and distribution.

Qatar's Foreign Ministry condemned an Iranian missile attack on the Ras Laffan Industrial City, a major gas facility, causing a fire and "extensive damage." The attack, which occurred on Wednesday, prompted a response from civil defense teams, though QatarEnergy reported no casualties. This incident follows Iran's threat to target Gulf region oil and gas facilities, including Ras Laffan, in retaliation for alleged Israeli attacks on Iranian gasfields. Qatar considers the attack a violation of its sovereignty and a threat to its national security. The incident also follows Qatar's suspension of LNG production on March 2 after attacks on the Ras Laffan facility and a power plant in Mesaieed Industrial City.

On March 18, 2026, Iran confirmed the death of its national security chief, Ali Larijani, following an Israeli air strike. This comes less than three weeks after the death of Ayatollah Ali Khamenei in US-Israeli strikes. Israel has vowed to "neutralize" the new Supreme Leader, Mojtaba Khamenei. Larijani, a close confidant of the late Ayatollah, played a key role in Iran's retaliatory actions during the ongoing war in the Middle East. The assassination occurred amidst rising tensions, with Iran threatening shipping in the Strait of Hormuz and the US criticizing allies for not assisting in escorting oil tankers.

According to Israeli national security sources, Iran's new supreme leader, Mojtaba Khamenei, son of the late Ayatollah Ali Khamenei, is not effectively controlling the regime. Since his father's death in late February, Mojtaba has not made any public appearances, with some reports claiming he was injured in the strike that killed his father. Despite Iranian officials' claims of good health, sources suggest Mojtaba is an "empty entity" and the Iranian leadership is "broken" and "misfunctioning." A message attributed to Mojtaba was broadcast on Iranian state TV, vowing revenge for recent Israeli strikes that have killed several senior Iranian officials, including Ali Larijani and Gholamreza Soleimani. These strikes are part of what the IDF describes as a continuing and successful effort.

Iran significantly escalated attacks on civilian infrastructure and transport networks across the Gulf on Wednesday, targeting commercial ships and Dubai's international airport. These actions occurred as US and Israeli warplanes launched new strikes. The UAE, particularly Dubai, has borne the brunt of these attacks, facing an existential threat as foreigners flee. The escalation has caused oil prices to rise above $100 a barrel, with Iran threatening a long "war of attrition." Meanwhile, a review revealed the US defense secretary has voiced extreme antipathy towards Iran for years. A bill addressing the situation has passed the House, but lacks the necessary votes in the Senate due to filibuster rules.

A projectile struck a residential area in Al-Kharj, Saudi Arabia on Sunday, killing two foreign nationals (one Indian and one Bangladeshi) and injuring twelve others. Saudi authorities reported the incident, attributing it to an unspecified "military projectile," while Iran's IRGC claimed responsibility, stating they targeted radar systems in the Al-Kharj governorate, home to the Prince Sultan airbase. This attack is part of a series of Iranian counterattacks on Gulf nations hosting US military assets, following Israeli strikes on Iranian oil facilities. Other attacks on Sunday included intercepted drones in Riyadh, damage to fuel tanks at Kuwait's international airport, and damage to a water desalination plant in Bahrain. The escalating conflict raises concerns for the safety of the diverse international workforce across the Gulf.

On Sunday, Kuwait, Saudi Arabia, and Qatar reported missile and drone attacks, as Iran vowed to continue strikes against neighboring Gulf countries. Qatar stated it was targeted the previous day by multiple ballistic and cruise missiles fired from Iran, most of which were intercepted. Saudi Arabia's defense ministry reported intercepting and destroying fifteen drones entering its airspace. Kuwait's military reported responding to hostile drones that penetrated its airspace, with fuel tanks at Kuwait's international airport being targeted. Kuwait's national oil company also announced a precautionary cut to production. These incidents mark the second week of escalating regional conflict.

Recent Iranian attacks in the Gulf have expanded beyond traditional oil and gas infrastructure to include data centers, signaling a shift in targeting strategic assets. On March 1st, drone attacks damaged three Amazon Web Services data centers in the United Arab Emirates and Bahrain. These attacks suggest a deliberate effort to undermine the Gulf's post-oil future, particularly its ambitions in artificial intelligence. The region's AI investments, supported by partnerships and cloud providers, rely on cheap and reliable power, which is now threatened. This new focus on data centers poses a risk to the Gulf's economic diversification efforts.

In March 2026, amidst the US-Israel war on Iran, the conflict expanded across the Middle East. Iran reportedly targeted the Israeli embassy in Manama, Bahrain, with attacks on the Financial Harbour Towers. Saudi Arabia intercepted a cruise missile east of al-Kharj and three drones near Riyadh. Qatar's air defenses intercepted a drone targeting the Al Udeid Air Base in Doha, which hosts US assets, prompting security alerts and explosions. These Iranian attacks are reportedly retaliatory strikes on nations hosting US forces and assets. The EU has expressed solidarity with Gulf countries as the region faces increased instability.

An Iranian official warned that any European country aiding in aggression against Iran would become a legitimate target for retaliation. Deputy Foreign Minister Majid Takht-Ravanchi stated this to France24, while President Masoud Pezeshkian apologized to neighboring countries, including Bahrain, Saudi Arabia, the United Arab Emirates, Qatar and Oman, for Iranian attacks. Pezeshkian vowed that future attacks would only be in response to aggression against Iran, advocating for diplomatic solutions. Despite this, the UAE reported intercepting 16 ballistic missiles launched from Iran. Takht-Ravanchi also claimed Iran was negotiating with the U.S. in good faith regarding its nuclear program before recent military operations.

Amidst an escalating conflict entering its second week, explosions have been reported in Tehran and Jerusalem. The US State Department approved a $151.8 million arms sale to Israel, including 12,000 bomb bodies, intended to bolster Israel's defense capabilities. Israel and Iran have exchanged attacks, with Israel launching airstrikes on Beirut and Tehran, targeting Iranian leadership and infrastructure. Several Middle Eastern countries including the United Arab Emirates, Kuwait, Qatar, Bahrain and Saudi Arabia reported drone and missile attacks. Russia is reportedly sharing intelligence with Iran, while the US claims to be monitoring the situation closely.

Amidst escalating regional conflict following a US-Israeli attack on Iran, UAE President Sheikh Mohamed bin Zayed Al Nahyan stated the UAE is prepared to confront threats as Iran continues striking Gulf countries hosting US military assets. His comments, made on March 7, 2026, follow attacks within the UAE, including one that resulted in a fatality in Dubai. While Iranian President Pezeshkian initially apologized for strikes on neighboring countries, judiciary chief Ejei contradicted this, asserting Iran will continue "heavy attacks" on areas perceived as aiding the enemy. Despite Pezeshkian's later qualification emphasizing friendly relations, he maintained Iran's right to self-defense, signaling continued tensions in the region.