Global oil prices continued to rise on Thursday as Iran launched a wave of attacks on Gulf energy infrastructure, a response to Israeli strikes on a major natural gas field that some denounced as a dangerous escalation. The natural gas field, shared by Iran and Qatar, is the world’s largest. It’s known as South Pars on the Iranian side. In a social media post on Wednesday, President Donald Trump claimed the U.S. “knew nothing about” the attack on South Pars, despite some media reports suggesting otherwise. Trump said, “NO MORE ATTACKS WILL BE MADE BY ISRAEL pertaining to this extremely important and valuable South Pars Field unless Iran unwisely decides to attack a very innocent, in this case, Qatar — In which instance the United States of America, with or without the help or consent of Israel, will massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before.”Trump added that he does not want to use that level of violence “because of the long-term implications that it will have on the future of Iran.” Before Trump’s latest threat, Iranian President Masoud Pezeshkian said attacks on Iran’s energy infrastructure would “complicate the situation and could have uncontrollable consequences, the scope of which could engulf the entire world.” That set the stage for Thursday’s strikes, which set Qatari liquefied natural gas facilities and two Kuwaiti oil refineries on fire. The United Arab Emirates also shut down one of its gas operations, and a Saudi refinery on the Red Sea was hit.These developments could further rock global energy markets as the Trump administration is taking new steps to address oil supply disruptions. The Trump administration is easing sanctions on Venezuelan oil, with some limits, after previously suspending sanctions on Russian oil. The administration is also waiving maritime shipping requirements for 60 days under the Jones Act. The law is intended to protect the American shipbuilding sector, but it is often blamed for making gas prices more expensive.As of Thursday morning, Americans were paying an average of $3.88 per gallon of regular gasoline, up roughly 90 cents since the conflict began, according to AAA. “Look, gas prices are up, and we know they’re up, and we know that people are hurting because of it, and we’re doing everything that we can to ensure they stay lower,” Vice President JD Vance said on Wednesday. “This is a temporary blip.”Experts say that prices will likely remain high until traffic resumes in the largely blocked Strait of Hormuz, where one-fifth of the world’s oil typically passes through.Trump previously urged several countries to send warships to help reopen the strait, but none have publicly agreed so far. This issue is expected to be a topic of discussion as Trump meets with Japan’s Prime Minister, Sanae Takaichi, at the White House. “We have no plans to send warships right now,” Takaichi told the parliamentary session on Wednesday, but added that further action is possible after a potential ceasefire.
Global oil prices continued to rise on Thursday as Iran launched a wave of attacks on Gulf energy infrastructure, a response to Israeli strikes on a major natural gas field that some denounced as a dangerous escalation.
The natural gas field, shared by Iran and Qatar, is the world’s largest. It’s known as South Pars on the Iranian side.
In a social media post on Wednesday, President Donald Trump claimed the U.S. “knew nothing about” the attack on South Pars, despite some media reports suggesting otherwise.
Trump said, “NO MORE ATTACKS WILL BE MADE BY ISRAEL pertaining to this extremely important and valuable South Pars Field unless Iran unwisely decides to attack a very innocent, in this case, Qatar — In which instance the United States of America, with or without the help or consent of Israel, will massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before.”
Trump added that he does not want to use that level of violence “because of the long-term implications that it will have on the future of Iran.”
Before Trump’s latest threat, Iranian President Masoud Pezeshkian said attacks on Iran’s energy infrastructure would “complicate the situation and could have uncontrollable consequences, the scope of which could engulf the entire world.” That set the stage for Thursday’s strikes, which set Qatari liquefied natural gas facilities and two Kuwaiti oil refineries on fire. The United Arab Emirates also shut down one of its gas operations, and a Saudi refinery on the Red Sea was hit.
These developments could further rock global energy markets as the Trump administration is taking new steps to address oil supply disruptions.
The Trump administration is easing sanctions on Venezuelan oil, with some limits, after previously suspending sanctions on Russian oil.
The administration is also waiving maritime shipping requirements for 60 days under the Jones Act. The law is intended to protect the American shipbuilding sector, but it is often blamed for making gas prices more expensive.
As of Thursday morning, Americans were paying an average of $3.88 per gallon of regular gasoline, up roughly 90 cents since the conflict began, according to AAA.
“Look, gas prices are up, and we know they’re up, and we know that people are hurting because of it, and we’re doing everything that we can to ensure they stay lower,” Vice President JD Vance said on Wednesday. “This is a temporary blip.”
Experts say that prices will likely remain high until traffic resumes in the largely blocked Strait of Hormuz, where one-fifth of the world’s oil typically passes through.
Trump previously urged several countries to send warships to help reopen the strait, but none have publicly agreed so far. This issue is expected to be a topic of discussion as Trump meets with Japan’s Prime Minister, Sanae Takaichi, at the White House.
“We have no plans to send warships right now,” Takaichi told the parliamentary session on Wednesday, but added that further action is possible after a potential ceasefire.
