In a significant development amid escalating tensions in the Middle East, U.S. President Donald Trump publicly advised Israel not to carry out additional attacks on Iranian natural gas facilities. This statement came as a series of retaliatory strikes between Iran and Israel have intensified, causing a sharp rise in global energy prices and deepening the ongoing conflict involving the United States and its ally Israel against Iran.
The latest surge in violence was triggered after Iran retaliated against an Israeli assault on a major gas field by targeting Qatar’s Ras Laffan Industrial City. This facility is crucial as it processes approximately 20% of the world’s liquefied natural gas (LNG). The damage inflicted on Ras Laffan is severe, with experts warning that repairs could take several years to complete, thereby disrupting global energy supplies significantly. Alongside this, Saudi Arabia’s principal port on the Red Sea, which has served as an alternative export route to bypass the closure of the Strait of Hormuz by Iran, was also attacked, further complicating the regional energy landscape.
These attacks underscore Iran’s capability to impose substantial costs on the U.S.-Israeli campaign, highlighting the vulnerability of the Gulf’s most strategic energy infrastructure despite existing air defense systems. The Strait of Hormuz remains a critical chokepoint, through which nearly one-fifth of the world’s oil passes, making its security a top priority for global energy markets and geopolitical stability.
President Trump, facing political pressure at home due to rising fuel prices that affect his core voter base, has expressed frustration with allied nations that have been hesitant to fully support his calls for securing the Strait of Hormuz. However, in a meeting with reporters at the White House, where he was hosting Japanese Prime Minister Sanae Takaichi, Trump emphasized that he had explicitly instructed Israeli Prime Minister Benjamin Netanyahu not to repeat the attacks on Iranian energy sites. Trump assured that Netanyahu had agreed to refrain from such actions moving forward.
Meanwhile, discussions about increasing U.S. military presence in the Middle East continue. A U.S. official and several individuals familiar with the situation revealed that Trump is contemplating deploying thousands of additional troops to the region. Despite this, during his meeting with Prime Minister Takaichi, Trump clarified that there were no immediate plans to send ground forces, stating firmly, “I’m not putting troops anywhere.” This cautious stance reflects the complexity and sensitivity surrounding the conflict.
The energy crisis triggered by these hostilities shows no signs of abating nearly three weeks into the conflict. The threat of a global “oil shock” looms larger each day, prompting a coalition of major economies—including Britain, France, Germany, Italy, the Netherlands, and Japan—to issue a joint declaration. They expressed their willingness to contribute to efforts aimed at ensuring safe navigation through the Strait of Hormuz and pledged to take additional measures to stabilize energy markets, including collaborating with key oil-producing nations to boost output. However, the statement lacked specific action plans, and German Chancellor Friedrich Merz reiterated that any involvement in securing the strait would only occur once hostilities cease.
The reluctance of major U.S. allies to engage directly in the conflict reflects widespread skepticism about the war’s unclear objectives. European leaders have voiced concerns over the lack of a defined endgame and the limited control they have over the unfolding situation. This uncertainty was further highlighted by the Israeli airstrike on Iran’s South Pars gas field, which reportedly caught the U.S. off guard, revealing gaps in coordination between Washington and Tel Aviv. Israeli officials later indicated that the operation was conducted in consultation with the United States but stressed that such strikes were unlikely to be repeated.
Adding to the complexity, U.S. Defense Secretary Pete Hegseth reaffirmed that American objectives in the conflict remain consistent, despite the rising death toll exceeding 2,000, predominantly in Iran and Lebanon. In contrast, Director of National Intelligence Tulsi Gabbard testified before the House intelligence committee that U.S. and Israeli goals diverge significantly. While Israel aims to incapacitate Iranian leadership, the U.S. focus is on dismantling Iran’s ballistic missile capabilities and naval forces.
On the ground, Iran’s military declared that the recent strikes on its energy infrastructure represent a new phase in the conflict, warning that any future attacks on its facilities or those of its allies would provoke relentless retaliation until complete destruction is achieved. Ebrahim Zolfaqari, an Iranian military spokesman, issued a stark warning emphasizing the severity of consequences should the strikes continue.
The impact of the conflict on Qatar’s energy sector has been particularly severe. QatarEnergy’s CEO revealed that the Iranian attacks have disabled one-sixth of the country’s LNG export capacity, valued at approximately $20 billion annually. The restoration process is expected to span three to five years, signaling a prolonged disruption in global LNG supplies. Israeli media also reported damage to oil facilities at Israel’s Haifa port due to Iranian strikes, though no casualties were reported. Additionally, Iranian attacks have forced the United Arab Emirates to shut down its Habshan gas facility and triggered fires at two oil refineries in Kuwait.
These developments have sent shockwaves through global markets. Brent crude oil futures surged nearly 3% to $110.35 per barrel, after spiking as much as 10% earlier in the day. European gas prices soared over 15% and have increased by more than 60% since the conflict began. Stock markets in Japan and South Korea fell by around 3%, while the pan-European index dropped 2.3%, reaching its lowest level in over three months. The Dow Jones Industrial Average in the United States also declined by approximately 1%.
Concerns over persistent inflationary pressures have influenced monetary policies, with the European Central Bank and the Bank of England opting to maintain interest rates. Investors who previously anticipated rate cuts are now pricing in potential hikes by the end of the year. The ECB has revised its inflation forecast for 2026 upward to 2.6%, compared to 1.9% predicted in December. Meanwhile, European Union leaders convened in Brussels to explore strategies aimed at mitigating the impact of soaring energy costs on industries and consumers already grappling with a rising cost of living.
