The Middle East is no longer just a military battleground. It has become an energy war — and the world is already paying for it at the pump. On Wednesday, March 18, Israel struck the South Pars gas field off Iran’s southern coast, the largest natural gas reservoir on the planet. Within hours, Iran retaliated by firing missiles at Qatar’s Ras Laffan Industrial City, home to the world’s largest LNG export plant.With gas and oil fields destroyed across the region, energy markets are in shock — and the long-term fallout could reshape global supply chains for years. Overview Alliances Day-by-Day Who Said What Sites Hit Weapons Oil PricesUS and IsraelIranDissent within the USExpress InfoGenIE The South Pars strike was a turning point. Israeli forces targeted facilities linked to South Pars and the onshore hub at Asaluyeh in Bushehr Province — the first direct attack on Iran’s upstream production since the conflict began.The field’s scale makes this a big deal: together with Qatar’s North Dome, it forms the world’s largest natural gas field, holding an estimated 1,800 trillion cubic feet of gas and 50 billion barrels of condensate.Iran’s share alone accounts for roughly 36 percent of its proven gas reserves.A US defence official was quoted by Axios that the South Pars strike was coordinated with and approved by the Trump administration. However, US President Donald trump quickly dismissed the assertion and said US had no clue about Israel’s plan to attack the gas field.But South Pars wasn’t the first Iranian energy target. Prior attacks had targeted oil storage depots in Karaj, Shahran, Aghdasieh, and Shahr-e Rey — all areas in or around the capital Tehran. The 2,25,000-barrels-per-day Tehran refinery was also damaged.Story continues below this adThe Israeli military said it had targeted “several fuel storage complexes belonging to the IRGC in Tehran” that it claimed were used to distribute fuel to military entities.The aftermath was grim: Tehran was shrouded in toxic smoke that left residents reporting black rainfall, with Iran’s environmental authorities urging people to stay indoors.Earlier in the war, the United States also targeted military infrastructure on Iran’s Kharg Island.Prominent sites in Iran hit by US and Israel include, South Pars, Iranian Fuel Storage & Processing Sites near Asaluyeh, Kharg Island, and the Tehran refineries.Story continues below this adThe retaliation: Ras Laffan and the Gulf in flamesIran’s response came fast. Tehran announced that five facilities across Saudi Arabia, the UAE, and Qatar “will be targeted in the coming hours” — naming Saudi Arabia’s SAMREF refinery and Jubail petrochemical complex, the UAE’s Al Hosn gas field, and Qatar’s Ras Laffan refinery and Mesaieed petrochemical complex.Then missiles flew. Qatar’s Ministry of Foreign Affairs confirmed that Iranian attacks on Ras Laffan Industrial City “caused fires resulting in significant damage to the facility”. This was the second time Ras Laffan was struck — Qatar had already suspended LNG production on March 2 following earlier Iranian drone attacks on Ras Laffan and Mesaieed Industrial City. What Happened About Ras Laffan Why It's Dangerous World Reacts Fuel ImpactIndia Fuel Prices — Mar 19, 2026Crude oil prices: oilprice.com, Goodreturns (Mar 19, 2026) · India fuel prices: Goodreturns (Mar 19, 2026) · CNG prices for Chennai, Bengaluru, Hyderabad, Kolkata are approximate — verify with city gas distribution companies before publication · Editorial sources: Al Jazeera, Reuters, BBC, CNN, ABC News, CBS NewsExpress InfoGenIE When that first attack hit, benchmark Dutch and British wholesale gas prices soared by almost 50 percent, while benchmark Asian LNG prices jumped nearly 39%, Al Jazeera reported.Following the Ras Laffan attack, Reuters reported Saudi Aramco’s SAMREF facility had also been targeted.Story continues below this adEarlier, Iran had hit an oil facility in Fujairah, United Arab Emirates.Hours after Ras Laffan was struck by an Iranian missile (after four had been intercepted), Abu Dhabi shut its Habshan gas facilities as they were hit by falling debris from an intercepted strike.In a later statement, QatarEnergy said several other LNG facilities had also been attacked, “causing sizeable fires and extensive further damage”.Prominent facilities hit in the UAE are ADNOC’s Ruwais Refinery (Abu Dhabi), Habshan Gas Facility & Bab Oil Field (Abu Dhabi), UAE Gas Fields, Fujairah Oil Storage and Loading Terminals.Story continues below this adDiplomatic falloutIn a sharp diplomatic move, Qatar expelled Iran’s military and security attachés following the Ras Laffan strike.Donald Trump set a new ultimatum, threatening to “blow up Iran”, to coax NATO allies into the war.Saudi Arabia also came under fire. The Saudi defence ministry said it intercepted four ballistic missiles launched toward Riyadh, with debris falling in various parts of the capital.Saudi Aramco’s mammoth Ras Tanura refinery and crude export terminal also shut ops due to attacks, reported Al Jazeera.Story continues below this adThe market shock: Prices spiral, strait chokedThe financial fallout is staggering. Brent crude price rose more than 8% to surge past $112 per barrel after the Ras Laffan attack was confirmed.The conflict already led to the suspension of about a fifth of global crude and natural gas supply, as Tehran targeted ships in the Strait of Hormuz.Total oil output cuts in the Middle East are estimated at 7 to 10 million barrels per day — roughly 7 to 10 percent of global demand.For American drivers, it’s showing up at the pump. As per CNN, Gasoline prices in the United States hit their highest level in almost two and a half years, with regular gas averaging $3.84 a gallon and topping $5 in California, Hawaii, and Washington.Story continues below this adLong-term fallout: What could go wrong from hereThe possibilities are alarming. Israel’s offshore gas fields — Leviathan, Tamar, and Karish — remain exposed to potential Iranian retaliation, as per Iran International. Expanding the conflict to the Eastern Mediterranean would transform a regional confrontation into a multi-basin energy crisis.The global markets are already volatile. If disruptions keep oil and gas prices elevated for an extended period, the global economy could experience a wave of inflation.Senior fellow at the Center for a New American Security Rachel Ziemba was quoted by Al Jazeera as saying that the attacks could “put further pressure on regional power supplies”, while smaller nations with weaker economies in the Global South face the most immediate pain as “LNG price increases lead to demand destruction”.Dounder and CIO of Pickering Energy Partners Dan Pickering told CNBC: “We’re moving from a supply chain problem to potentially a supply problem. There’s a big difference. You fix supply chain problems quickly.”Story continues below this adAnd President Trump has issued a stark ultimatum: if Qatar’s LNG facilities are attacked again, the US will “massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen”.