Israel strikes Iran's largest natural gas field; What it means for the region

Israel's Defence Minister, Israel Katz, confirmed on Monday that Israel had launched a significant attack on Iran's South Pars petrochemical plant at Asaluyeh, a key energy site in the country.

Katz stated, "We just carried out a powerful strike on the largest petrochemical facility in Iran, located in Asaluyeh, a central target responsible for about 50 percent of the country's petrochemical production."

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The strike on South Pars comes after a similar Israeli attack in March, which targeted Iran's main energy source, the South Pars gas field and its associated infrastructure at the nearby Asaluyeh processing hub.

This earlier attack had prompted Iranian retaliatory strikes targeting oil and gas facilities across Gulf Arab states, escalating tensions in the region. Israel's fresh attack on the South Pars plant could once again put the region at risk of further escalation. 

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Why South Pars is critical

South Pars is a major 9,700-square-kilometer gas field shared by Iran and Qatar. The Iranian side of the field, known as South Pars, supplies approximately one-third of the field’s total output, with the Qatari side called North Dome or North Field.

The field lies beneath the Persian Gulf, a critical shipping route that has been significantly impacted since Iran escalated its control over the Strait of Hormuz, a key chokepoint through which about 20 per cent of the world’s oil supply passes.

South Pars is Iran's cornerstone for natural gas production, contributing to around 80 per cent of the country’s electricity generation. Any disruption to this supply could have severe consequences for Iran's energy infrastructure.

The field is also crucial for Iraq, which relies on Iranian gas exports for up to 40 per cent of its power and gas needs, further amplifying the geopolitical stakes.

Energy implications

Israel's strike on the South Pars facilities has already caused a spike in oil and gas prices. According to estimates, the field holds between 14 and 51 trillion cubic meters of natural gas, making it one of the most significant energy sources in the region.

Iran is the world’s fourth-largest consumer of natural gas, and the facility's disruption could cripple its energy sector, as it plays a pivotal role in domestic electricity generation.

Beyond Iran's energy needs, any long-term disruption could also affect the stability of energy supplies to neighboring countries like Iraq.

The attack on South Pars marks a significant escalation in the ongoing tensions between Israel and Iran, with potential ripple effects across the region.