Impact of U.S.-Israel Attack on Iran’s Energy Sector

The United States and Israel launched a pivotal attack on Iran on Saturday, which could have far-reaching implications for oil and gas production and the energy infrastructure across the Middle East.

Iran is a key player in global oil production, being the third largest producer within OPEC and contributing about 4.5% to global oil supplies. With significant oil and gas outputs, especially from strategic locations like Kharg Island and South Pars gas field, Iran plays a critical role in energy supply routes crucial to international markets.

However, U.S. Treasury sanctions targeting Chinese refiners purchasing Iranian oil have complicated the situation. Despite measures such as ship-to-ship transfers and altering oil origins to navigate sanctions, Iran continues to face challenges. The world's largest gas reserve, shared with Qatar, adds another complex layer to the geopolitical dynamic.