Strikes On Energy Sites Push Oil Prices Higher

2026-03-18 03:08:50

(MENAFN- Kashmir Observer) Dubai- The escalating conflict between Israel and Iran intensified on Wednesday, with fresh strikes, rising casualties, and growing threats to critical energy infrastructure across the Middle East, pushing global oil prices sharply higher.

Israel continued its campaign targeting Iran's top leadership, reportedly killing Intelligence Minister Esmail Khatib in a strike. Israeli Defence Minister Israel Katz signalled further operations, warning of“significant surprises” ahead. Earlier, senior Iranian figures, including Ali Larijani and Basij chief Gen. Gholam Reza Soleimani, were also killed.

Iran retaliated with missile attacks on Israel and strikes across the Gulf region, including Saudi Arabia's oil-rich Eastern Province. The widening conflict has disrupted energy flows, with Tehran restricting movement through the Strait of Hormuz - a vital route for nearly one-fifth of global oil supplies.

Oil prices rose over 5 per cent to cross USD 108 per barrel, with Brent crude up nearly 50 per cent since the conflict began on February 28, raising concerns over global inflation and economic stability.

A major flashpoint emerged after US attack on Iran's South Pars gas field, shared with Qatar. In a rare move Gulf countries condemned the strike as a dangerous escalation.

IRGC spokesman Lt. Col. Ebrahim Zolfaqari stated that facilities in countries used to launch attacks on Iran would be“set ablaze,” while warning civilians to stay away from key energy sites in Saudi Arabia, the UAE, and Qatar.

Iranian officials also reported damage to gas facilities in Asaluyeh following what they described as joint US-Israeli airstrikes. The IRGC Navy further warned it has expanded its list of targets to include oil installations tied to US interests.

Tehran has defended its restrictions in the Strait of Hormuz, saying the waterway remains open but not for“hostile nations,” while continuing missile operations, including the use of multiple-warhead systems against Israel.

Read Also Iran War: World Shares Fall as Oil Tops $100 Crude Oil Near $120 as Iran War Disrupts Production, Shipping

Iran maintains that its actions are defensive and aimed at countering Israeli and US aggression. The Islamic Revolutionary Guard Corps (IRGC) warned that energy infrastructure linked to the United States and its allies could be targeted in retaliation.

Regional and Global Impact

The conflict has spread beyond Iran and Israel, with Israeli strikes in Lebanon targeting Hezbollah positions in Beirut and the Bekaa Valley, killing several people and displacing over a million residents, according to Lebanese authorities.

Meanwhile, Gulf nations have begun rerouting oil exports to bypass the Strait of Hormuz, while Iraq announced plans to resume exports via Turkey.

The United States has moved to ease sanctions on Venezuela in an effort to stabilise oil markets, as concerns grow over prolonged supply disruptions.

With no immediate de-escalation in sight, analysts warn the conflict risks evolving into a broader regional war, with severe implications for global energy security and economic stability.

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