Iran activated its energy retaliation mechanism on Wednesday after Israel targeted the South Pars gasfield for the first time in the conflict — the world’s largest natural gas reserve. The Revolutionary Guards announced imminent strikes against energy facilities in Saudi Arabia, the UAE, and Qatar, naming specific sites and ordering evacuation. Oil prices surged toward $110 a barrel as the activation of Iran’s energy retaliation mechanism set the world’s most consequential energy crisis in motion.
South Pars, shared between Iran and Qatar, has been at the heart of Iran’s gas economy throughout the conflict. Israel’s decision to target it — reportedly with US authorization — broke months of restraint and triggered Iran’s most specific and threatening military response of the war. Both countries had deliberately avoided this step, but the calculation had changed — and the consequences were immediate.
Iran’s state broadcaster named Saudi Arabia’s Samref refinery and Jubail complex, the UAE’s al-Hosn gasfield, and Qatar’s Mesaieed and Ras Laffan facilities as targets for strikes within hours. All workers and residents near these sites were told to leave without delay. The governor of Asaluyeh province said the US-Israeli decision was “political suicide” and declared the war had entered a total economic warfare phase.
Brent crude rose nearly 5% to $108.60 per barrel, while European gas prices climbed more than 7.5% to above €55.50 per megawatt hour. Gulf oil exports had already fallen 60% from pre-war volumes due to sustained infrastructure attacks and Iran’s Strait of Hormuz blockade. Iran had maintained its own crude exports through the strait unimpeded while blocking Gulf neighbors’ shipments — a strategic advantage that had persisted throughout the conflict.
Qatar’s government spokesperson warned that attacking energy infrastructure constituted a threat to global energy security and regional populations. The activation of Iran’s energy retaliation mechanism meant the conflict had crossed a threshold from which it would be difficult to step back. With specific targets identified, evacuation orders issued, and a timeframe of hours set, the world faced an energy crisis that demanded immediate and decisive international engagement.