What is the South Pars gas field and why is Israel’s attack an escalation?

(CNN) — An Israeli strike on Iranian facilities linked to the South Pars gas field marked a significant escalation in the war, prompting a furious Iran to attack major energy facilities of its Persian Gulf neighbors and Israel.

Energy prices were already spiking because the effective closure of the Strait of Hormuz means oil and gas that is already produced can’t get to its intended customers on time. But the new wave of attacks against energy facilities, including those processing the South Pars natural gas, puts added pressure on global supply.

This double whammy has sent prices for oil and natural gas even higher and prompted US President Donald Trump to threaten to “blow up” South Pars if Iran didn’t stop its own attacks.

Here is why the strikes against South Pars are so significant:

What is the South Pars gas field?

South Pars is part of the world’s largest natural gas reserves, located offshore in the Persian Gulf. It is shared between Iran and Qatar, which calls its part of it the North Dome.

The entire ​gas field contains an estimated 1,800 trillion cubic feet of usable gas — enough to ​supply the world’s needs for 13 years, according to Reuters.

Natural gas from South Pars is the biggest source of Iran’s domestic energy supply. The country has previously suffered power shortages because of disruptions to gas supplies, so any loss of production capacity would affect its ability to produce electricity and heat homes.

But why does it matter globally?

Qatar has pumped billions into developing its side of the gas field and is the world’s second-biggest supplier of liquefied natural gas, or LNG, after the United States. When Israeli strikes previously hit infrastucture linked to South Pars in June 2025, officials told CNN that the Qatar side was a “vital energy source for the US, Europe and the world.”

In retaliation for this week’s South Pars attack, Iran hit Qatar’s Ras Laffan Industrial City, causing “extensive damage,” according to state-owned QatarEnergy.

Ras Laffan is a key energy hub, processing all of the gas from the North Dome. It has been mostly shut since early March, but significant damage to the facility could delay the restart of production.

Since about a fifth of global LNG supply comes from Qatar, nearly all of it from Ras Laffan, any delay could have a huge effect on the price and supply of LNG.

Analysts at Wood Mackenzie, a leading energy consultancy, said Thursday that “the attacks fundamentally reshape (the) global LNG outlook,” with disruption to global natural gas supply now likely to last longer than two months.

What is the reaction in the region?

Arab countries have condemned attacks on infrastructure linked to South Pars. The UAE called it a “a serious escalation” constituting a direct threat not only to global energy supplies but also to regional security. Qatar called the South Pars strikes a “dangerous and irresponsible step.”

Iran retaliated swiftly and with force. Apart from Ras Laffan in Qatar, two refineries in the Saudi Arabian capital, Riyadh, were attacked. Saudi Arabia then said it “reserved the right to take military actions” against Iran if deemed necessary.

Later on Thursday, Saudi Arabia’s Defense Ministry said it had intercepted an Iranian missile targeting the port of Yanbu, which has become a backup port for Saudi oil exports, given the blockade of the Strait of Hormuz.

An Iranian missile also struck an Israeli oil refinery complex at Haifa on Thursday.

What has Trump said?

Trump threatened to “massively blow up” South Pars if Iran continues attacks on Qatar’s energy facilities. Trump said the US “knew nothing” about the Israeli attack on South Pars. However, one Israeli official told CNN on Wednesday that the strike was carried out in coordination with the US.

The attacks could spell trouble for Trump, who is already struggling to contain the effect that his war on Iran is having on the wallets of ordinary Americans.

Mohit Kumar, an economist at the investment bank Jefferies, said Thursday that the US has been trying to avoid hitting energy infrastructure in efforts “to keep a lid on oil prices.”

“But Israel’s attack on Iran’s gas field showed that as the war drags on, any red lines are likely to get blurred,” he added in his morning note.

CNN’s Tal Shalev, Nadeen Ebrahim, Aleena Fayaz, Mohammed Tawfeeq, John Towfighi, and Hanna Ziady contributed reporting.

The-CNN-Wire
™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.