Impact of U.S.-Israel Attack on Iran’s Energy Sector

A recent attack by the U.S. and Israel on Iran has potential to disrupt oil and gas output, affecting energy infrastructure in the Middle East. Iran, a major OPEC oil producer, faces reduced exports due to Western sanctions, relying on strategic measures to circumvent them and maintain output.

The United States and Israel launched a pivotal attack on Iran on Saturday, which could have far-reaching implications for oil and gas production and the energy infrastructure across the Middle East.

Iran is a key player in global oil production, being the third largest producer within OPEC and contributing about 4.5% to global oil supplies. With significant oil and gas outputs, especially from strategic locations like Kharg Island and South Pars gas field, Iran plays a critical role in energy supply routes crucial to international markets.

However, U.S. Treasury sanctions targeting Chinese refiners purchasing Iranian oil have complicated the situation. Despite measures such as ship-to-ship transfers and altering oil origins to navigate sanctions, Iran continues to face challenges. The world's largest gas reserve, shared with Qatar, adds another complex layer to the geopolitical dynamic.

(With inputs from agencies.)