Production at Iran’s massive South Pars gas field — the largest in the world — has been partially suspended following a reported Israeli airstrike that ignited a fire at the site, according to Iran’s semi-official Tasnim news agency.
The strike, which occurred on June 13, marks a major escalation in the ongoing conflict between Israel and Iran, as it’s reportedly the first time Israel has targeted Iran’s critical oil and gas infrastructure. Located offshore in southern Iran’s Bushehr province, South Pars is a vital pillar of Iran’s energy sector, accounting for the majority of the country’s gas output. Iran shares this gas field with Qatar, which calls its section the North Field.
According to Iranian sources, the attack sparked a fire in one of the four operational units of Phase 14 at the field, forcing a shutdown of production equivalent to 12 million cubic meters of gas per day. The Iranian Oil Ministry has since confirmed the fire has been extinguished, though output remains disrupted.
If confirmed, the implications are far-reaching. Iran is the world’s third-largest gas producer after the U.S. and Russia, contributing about 275 billion cubic meters annually — roughly 6.5% of global output. However, due to longstanding international sanctions, most of Iran’s gas is consumed domestically. Meanwhile, Qatar — with foreign partners like ExxonMobil and Shell — exports liquefied natural gas (LNG) to Europe and Asia and produces around 77 million tonnes annually.
The reported strike came just one day after oil prices surged by 9% on June 13, driven by the broader regional tensions following Israel’s initial wave of airstrikes across Iran. That earlier assault focused on nuclear sites and military leaders and did not appear to affect energy infrastructure — until now.
Israel has framed its military campaign as a preemptive action to stop Tehran’s nuclear ambitions. Iran, in turn, has vowed retaliation as the two countries continue to exchange attacks. Civilian casualties have been reported on both sides.
The potential for further energy disruptions could intensify global market volatility, especially if the conflict spills into neighboring Qatar’s portion of the shared gas field — a critical supply source for many countries seeking alternatives to Russian energy.
