In a significant development on Thursday, U.S. President Donald Trump publicly stated that he had advised Israeli Prime Minister Benjamin Netanyahu against conducting further attacks on Iran’s natural gas facilities. This warning came amid a series of retaliatory strikes targeting critical energy infrastructure, which have driven energy prices sharply upward and intensified the ongoing conflict involving the United States, Israel, and Iran. The escalating tit-for-tat assaults have heightened concerns over regional stability and the security of vital energy supplies.
The latest surge in tensions was triggered when Iran retaliated against an Israeli airstrike on its South Pars gas field by launching an attack on Qatar’s Ras Laffan Industrial City. This facility is a crucial hub, processing about 20 percent of the world’s liquefied natural gas (LNG). The damage inflicted by Iran’s strike is expected to take several years to repair, underscoring the severity of the blow to global energy infrastructure. In addition, Saudi Arabia’s principal port on the Red Sea, which has been instrumental in rerouting exports to bypass the closure of the Strait of Hormuz by Iran, also suffered an attack, further complicating the energy supply chain in the region.
These developments highlight Iran’s persistent capability to impose significant costs on the U.S.-Israeli campaign, despite advanced air defense systems designed to protect the Gulf’s most strategic energy assets. President Trump, who faces political pressure due to rising fuel prices affecting his core voter base, has criticized allied nations for their cautious approach to his calls for securing the Strait of Hormuz—a critical maritime passage responsible for transporting roughly one-fifth of the world’s oil exports. Nevertheless, Trump emphasized that he had explicitly instructed Netanyahu not to repeat the attacks on energy infrastructure, assuring reporters from the Oval Office that the Israeli leader would comply with this directive.
During a meeting with Japanese Prime Minister Sanae Takaichi, Trump dismissed rumors about deploying additional U.S. ground forces to the Middle East, stating, “I’m not putting troops anywhere.” However, reports indicate that the administration is contemplating sending thousands more troops to the region, reflecting the complex and evolving nature of the conflict. Netanyahu, speaking at a press conference later that day, confirmed that Israel had acted independently in the bombing of the South Pars gas field and acknowledged Trump’s request to refrain from similar future attacks. He also remarked that while Iran’s military capabilities have been severely degraded by weeks of U.S.-Israeli airstrikes, a fundamental change in Iran’s regime would require a ground operation—a point he left deliberately vague amid ongoing hostilities.
As Netanyahu addressed the media, Iran launched another missile barrage targeting Israel, signaling the continuation of hostilities. The Islamic Revolutionary Guard Corps claimed responsibility for the strikes, underscoring the persistent volatility in the region. Meanwhile, the energy crisis deepened as global markets reacted to the uncertainty. With the conflict now entering its third week and fears of a worldwide oil shock mounting, several Western nations—including Britain, Canada, France, Germany, Italy, the Netherlands, and Japan—issued a joint statement expressing their willingness to contribute to efforts ensuring safe passage through the Strait of Hormuz. They also pledged to explore measures aimed at stabilizing energy markets, such as collaborating with oil-producing countries to boost output. However, concrete actions remain elusive, 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 more directly in the conflict reflects skepticism about the war’s unclear objectives and the limited control these countries have over its trajectory. Notably, Israel’s unilateral strike on Iran’s South Pars gas field—an operation reportedly unknown to the U.S. administration beforehand—exposed gaps in coordination between the key players. While some Israeli officials indicated that the attack was conducted in consultation with the United States, they also suggested it was unlikely to be repeated, highlighting the fragile nature of strategic alignment.
On the U.S. side, Defense Secretary Pete Hegseth reaffirmed that American objectives in the conflict remain consistent and on track, despite the mounting casualties—estimated at over 2,000, predominantly in Iran and Lebanon. However, Director of National Intelligence Tulsi Gabbard presented a contrasting view to the House intelligence committee, noting that U.S. and Israeli goals diverge. While Israel focuses on dismantling Iran’s leadership, the U.S. aims to eliminate Iran’s ballistic missile capabilities and naval forces. Meanwhile, the Trump administration is seeking an additional $200 billion in funding to support the war effort, though this request faces significant resistance in Congress.
Iran’s military has declared that the recent strikes on its energy infrastructure mark “a new stage in the war,” warning that any further attacks on its or its allies’ energy assets will provoke relentless retaliation until complete destruction is achieved. Iranian military spokesman Ebrahim Zolfaqari issued a stark warning that continued aggression would escalate the conflict further. The CEO of QatarEnergy revealed that the Iranian strike had disabled approximately one-sixth of Qatar’s LNG export capacity, valued at $20 billion annually, with repair efforts expected to span three to five years. Israeli media also reported that Iranian missiles struck oil facilities in the port city of Haifa, causing damage but no casualties. Additionally, Iranian attacks have forced the United Arab Emirates to shut down its Habshan gas facility and ignited fires at two oil refineries in Kuwait.
The impact of these attacks reverberated through global markets, with Brent crude oil futures rising nearly 3 percent to $110.35 per barrel by late afternoon, after surging as much as 10 percent earlier in the day. European gas prices jumped more than 15 percent, accumulating a 60 percent increase since the conflict began. Stock markets in Japan and South Korea dropped around 3 percent, while the pan-European index fell 2.3 percent to its lowest level in over three months. The Dow Jones Industrial Average in the United States declined by about 1 percent. These market reactions have fueled concerns about persistent inflationary pressures, prompting the European Central Bank and the Bank of England to maintain interest rates, despite earlier expectations of cuts. The ECB now forecasts inflation at 2.6 percent in 2026, up from 1.9 percent predicted last December.
At a recent summit in Brussels, European Union leaders convened to discuss strategies to mitigate the rising energy costs burdening industries and consumers already grappling with the high cost of living. The ongoing conflict and its repercussions on energy security continue to pose significant challenges for policymakers worldwide, highlighting the intricate link between geopolitical tensions and global economic stability.
