Global energy markets remain in a state of high alert after several Gulf states suspended oil and gas production following escalating tensions in the region.

Since Saturday’s attacks by the United States and Israel, Tehran has targeted various sites in Israel and across several Gulf countries.

Initially, these Iranian attacks focused primarily on US military assets, but Gulf states have reported that Iran has since broadened its scope to target civilian infrastructure, including hotels, airports and energy facilities. Iranian officials have publicly denied targeting Gulf energy facilities, however.

The Middle East remains the world’s dominant source of hydrocarbon reserves and a major driver of crude oil and natural gas output.

How much oil and gas does the Middle East have?

Nearly half of the world’s oil reserves and exports come from the Middle East, which contains five of the seven largest oil reserves in the world.

Once refined, crude oil is used to make various products, including petrol, diesel, jet fuel and a wide range of household items such as cleaning products, plastics and even lotions.

After Venezuela, which has 303 billion barrels, Saudi Arabia holds the world’s second-largest proven crude oil reserves, estimated at 267 billion barrels.

The Middle East’s largest oil reserves:

• Saudi Arabia: 267 billion barrels
• Iran: 209 billion barrels
• Iraq: 145 billion barrels
• UAE: 113 billion barrels
• Kuwait: 102 billion barrels

Saudi Arabia is also the world’s top oil exporter with an estimated $187bn of crude in 2024, according to data from the Observatory of Economic Complexity (OEC).

The Middle East’s top oil exporters:

• Saudi Arabia: $187bn
• UAE: $114bn
• Iraq: $98bn
• Iran: $47bn – largely sold at a discount due to US sanctions
• Kuwait: 29bn

Other Middle Eastern countries with sizeable oil exports include: Oman ($28.9bn), Kuwait ($28.8bn) and Qatar ($21bn).

In addition to crude oil, the Middle East is a global powerhouse for natural gas, accounting for nearly 18 percent of global production and approximately 40 percent of the world’s proven reserves.

Natural gas is primarily used for electricity generation, industrial heating, and in chemicals and fertilisers.

The heart of Middle Eastern gas is a single, massive underwater reservoir called the South Pars/North Dome field. It is the largest gasfield in the world, and it is shared directly between Qatar and Iran.

Gas is transported either through pipelines or by tankers. When using pipelines, the gas is pressurised and moved through steel networks. When pipelines are not feasible, such as across oceans, Liquefied Natural Gas (LNG) is used.

To create LNG, the gas is cooled to approximately -162C (-260F), shrinking its volume and allowing it to be safely loaded onto specialised tanker ships for global transport.

To transport oil and gas, tankers from various Gulf states must navigate the narrow waterway known as the Strait of Hormuz. Approximately one-fifth of global oil and gas passes through this strait, primarily heading to major markets in Asia, including China, Japan, South Korea and India, as well as to Europe.

Which energy facilities have been attacked?

Here are the facilities which have recorded damage as of Wednesday:

Saudi Arabia – Ras Tanura oil refinery

On Monday, one of the world’s largest oil refining complexes, the Ras Tanura oil refinery owned by Saudi Aramco, was forced to halt operations after debris from intercepted Iranian drones caused a small fire.

Saudi Aramco is one of the world’s largest companies, with a market capitalisation exceeding $1.7 trillion and revenue of $480bn. Headquartered in Dhahran, in eastern Saudi Arabia, Aramco controls 12 percent of global oil production, with a capacity of more than 12 million barrels per day (bpd).

On Wednesday, Saudi defence officials reported a second drone attempt on the facility but this was successfully intercepted with no damage or disruption to operations reported.

Qatar – Ras Laffan Industrial City LNG facilities

On Monday, Qatar’s Ministry of Defence reported that Iranian drones had targeted an energy facility in Ras Laffan belonging to QatarEnergy, the world’s largest LNG producer.

While no casualties were reported, QatarEnergy suspended the production of LNG and other products at the impacted sites.

QatarEnergy’s 81 million metric tonnes of LNG exports are mostly bound for Asian markets, including China, Japan, India, South Korea, Pakistan and other countries in the region. The halt in production hiked global gas prices to a three-year high this week.

Qatar – Mesaieed Industrial City

Qatar’s Defence Ministry said the country was attacked by a second drone launched from Iran on Monday, targeting a water tank belonging to a power plant in Mesaieed, without reporting any casualties.

On Tuesday, QatarEnergy also stopped production of some downstream products like urea, polymers, methanol, aluminium and others.

UAE – Fujairah and Mussafah oil terminals

On Monday, a fire broke out at Mussafah Fuel Terminal in southwest Abu Dhabi after it was struck by a drone.

On Tuesday, falling debris from a drone interception caused a fire at the Fujairah Oil Terminal along the eastern coast of the United Arab Emirates. No injuries were reported.

Oman – ports of Duqm and Salalah

On Tuesday, multiple Iranian drones struck fuel tanks and a tanker at the port of Duqm, with at least one direct hit on a fuel storage tank, causing an explosion.

On the same day, a drone strike was recorded at the Port of Salalah, which handles fuel and industrial minerals.

Athe Nova – oil tanker

On Monday, the Athe Nova, a Honduran-flagged tanker positioned off the coast of Khor Fakkan, UAE, was struck by Iranian drones as it was transiting the Strait of Hormuz, setting it ablaze. Despite the fire, the vessel managed to exit the chokepoint into the Gulf of Oman, and no casualties were reported.

Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for the strike, identifying the Athe Nova as an “ally of the United States”.

On the same day as the attack, Iran declared the Strait of Hormuz closed, warning that any ship attempting to pass would be “set ablaze”.

Since then, several other tankers have been hit.

Other regional energy disruptions

Although not directly targeted, the following energy sites suspended operations in response to Iranian retaliatory attacks:

Israeli offshore gasfields – Major gas production fields such as Leviathan and Tamar were shut down as a precaution following regional drone and missile launches linked to Iran.

Oil fields in semiautonomous Iraqi Kurdistan – Producers including DNO, Gulf Keystone and Dana Gas halted output as a safety measure amid the escalation.

Rumaila oilfield – Operations at Iraq’s largest oilfield – operated by BP – in southern Iraq were halted on Tuesday as a security precaution due to its proximity to the escalation zone.

Senior Iranian clerics would have been left “exposed” after an Israeli airstrike hit a meeting place where they were supposed to be convening Tuesday — days after a strike leveled the Tehran compound of Supreme Leader Ayatollah Ali Khamenei, a defense analyst has claimed.

The clerics, members of the Assembly of Experts, had reportedly planned to meet at the location in Qom to deliberate succession plans for Khamenei, who was killed in the strikes, according to The Times of Israel.

“This second strike would be another embarrassment to what has been left of the regime,” Kobi Michael, a senior researcher at the Institute for National Security Studies and the Misgav Institute, told Fox News Digital.

“It indicates intelligence dominance and superiority because any movement is detected, meaning they would feel exposed,” Michael added.

“As of now, the leadership would feel insecure and hunted, with all of their plans collapsing one after another.”

“They would feel totally isolated and understand that the biggest risk might come from home — from a potential uprising next,” he added.

Israel Defense Forces spokesman Brig. Gen. Effie Defrin confirmed that the Israeli Air Force struck the building where senior clerics had planned to assemble, The Times of Israel reported.

KHAMENEI’S DEATH OPENS UNCERTAIN CHAPTER FOR IRAN’S ENTRENCHED THEOCRACY

It remains unclear how many of the 88 members were present at the time of the strike, according to an Israeli defense source cited by the outlet. The second strike on Iran’s leadership comes amid a broader military campaign.

As previously reported by Fox News Digital, U.S. forces have struck more than 1,700 targets across Iran in the first 72 hours of Operation Epic Fury, according to a U.S. Central Command fact sheet.

The campaign is aimed at dismantling Iran’s security apparatus and neutralizing what officials describe as imminent threats.

According to U.S. Central Command, targets have included command-and-control centers, the Islamic Revolutionary Guard Corps Joint Headquarters, the IRGC Aerospace Forces headquarters, integrated air defense systems and ballistic missile sites.

FIREBRAND ANTI-AMERICAN CLERIC ALIREZA ARAFI SEEN AS CONTENDER TO REPLACE IRAN’S KHAMENEI

“We need strategic patience and determination, and in several weeks most of the job will be accomplished,” Michael added. “Even if the regime does not collapse, Iran will not be like we used to know.

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“I assume that the U.S. and Israel will establish a very robust monitoring mechanism that will enable them to react whenever the regime tries to reconstitute its military capacities again.”

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