Largest gas field struck in major war escalation
The latest escalation in the Iran war threatens to worsen an unprecedented disruption to global energy supplies.
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Iran has vowed retaliation after reported Israeli strikes hit Iran’s section of the world’s largest gas field in a major escalation of the war, sending oil prices up again.
Iran’s huge Pars fields were hit in the first reported strikes on Iranian energy infrastructure in the Gulf during the US-Israeli military action.
Pars is the Iranian sector of the world’s largest natural gas deposit, which Iran shares with Qatar.
Iran swiftly vowed to strike back at oil facilities across the Gulf and warned Saudi Arabia, the UAE and Qatar to evacuate energy targets.
The gas field attack was widely reported in Israeli media to have been carried out by Israel with US consent.
Iran’s Fars news agency reported that gas tanks and parts of a refinery had been hit on Wednesday (local time), workers were evacuated and emergency crews had to put out a fire.
Qatar, a close US ally that hosts the largest US airbase in the region, called it a “dangerous and irresponsible” escalation that put global energy security at risk.
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The US and Israel had previously held back from targeting Iran’s energy production facilities in the Gulf.
The Middle East situation has already caused the biggest interruption to energy supplies the world has seen. But, nearly three weeks, into the war there has been no sign of de-escalation.
Oil prices leapt to nearly $US110 a barrel ($156) after the attack.
The unprecedented disruption to global energy supplies has raised the political stakes for US President Donald Trump.
Diesel prices in the US rose above $US5 ($A7.10) a gallon for the first time since the 2022 inflation surge that eroded support for his predecessor Joe Biden.
Extra fuel to flow
In Australia, fuel is expected to imminently begin flowing from emergency stockpiles, as state and territory officials prepare for crisis talks.
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The agreement was discussed at a roundtable convened by Transport Minister Catherine King, two sources familiar with the meeting said. It is yet to be formally announced by the government.
It comes ahead of a national cabinet meeting on Thursday between Prime Minister Anthony Albanese and state and territory leaders to discuss price shocks and shortages driven by the war between the US, Israel and Iran.
State leaders are demanding faster action on the crisis and a long-term plan from the Commonwealth to deal with fuel shortages, if the conflict isn’t resolved quickly.
National cabinet plans to appoint a fuel tsar to help lead the nation’s response, Albanese revealed on Wednesday.
“I’ll be asking state premiers and chief ministers to appoint someone, a point person, so that the Commonwealth can collaborate in a way to make sure we deal with the challenges which are there,” he said in Tasmania.
NSW Premier Chris Minns said the gathering was an opportunity to deal with the challenges around fuel supply, particularly the availability of diesel.
“We’re keen to see a national plan that sets out a clear escalation pathway, including what further actions may be taken if the conflict continues and conditions worsen,” he said.
On top of allowing fuel companies to release a week’s worth of petrol and diesel from their emergency stockpiles, the government has eased quality standards to allow more fuel into the market.
But it has kept its cards close to its chest when asked about further potential measures.
Treasurer Jim Chalmers flagged more announcements in the coming days, but provided little detail.
“We are preparing for the risk of more prolonged disruption, including through work with international partners, to help insulate more fuel-exposed industries like farming, transport and mining,” he told ABC TV on Wednesday.
-with AAP
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