Global Energy Supply Disruptions Escalate as Iran-Israel-US Tensions Rise

Iran struck the world’s largest liquefied natural gas (LNG) facility at Qatar’s Ras Laffan hours after Israel targeted South Pars — the world’s biggest gas field shared by Iran and Qatar — marking a sharp escalation as both sides move to hit critical energy infrastructure. The tit-for-tat strikes have heightened fears of prolonged global supply disruptions. With the war completing three weeks on March 20, overnight attacks continued across multiple fronts. Explosions were reported in Tehran and Beirut. Saudi Arabia and the UAE said they intercepted Iranian missiles and drones, while Riyadh confirmed a drone strike on its SAMREF refinery in Yanbu on the Red Sea. On March 21, the Mina Al-Ahmadi Refinery in Kuwait was also hit in a drone attack. The escalation has also exposed rare public differences between the US and Israel. Israeli Prime Minister Benjamin Netanyahu said Israel “acted alone” in striking South Pars and acknowledged that US President Donald Trump had asked him to hold off further attacks on energy infrastructure. Trump, however, said he had opposed the strike and directly urged Netanyahu not to go ahead, stressing that Washington neither approved nor was involved. “I told him, ‘Don’t do that,’” Trump said, adding the US “knew nothing” about the operation. While calling overall coordination with Israel strong, Trump signalled limits: “We get along great… but on occasion he’ll do something… and if I don’t like it… we’re not doing that anymore.” Here’s all that happened on March 19-20: US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu’s statement on Israel’s decision to attack a critical Iranian gas field marks the most notable difference of opinion between the two leaders since the start of the war on February 28. Israel’s strike on the South Pars gas field prompted Iran to retaliate against energy infrastructure across the Middle East. The escalation has pushed already elevated global energy prices higher and spurred Gulf allies to call on Trump to rein in Netanyahu. Anne-Sophie Corbeau of the Centre on Global Energy Policy in Paris told Al Jazeera that Ras Laffan, the world’s largest liquefied natural gas (LNG) export facility in Qatar is likely to face a prolonged repair timeline after being attacked by Iran this week. “We don’t yet know the impact of the damage,” Corbeau said, adding that based on previous incidents, repairs could take months. “The last major incident at an LNG facility was Freeport LNG in Texas in 2022, which was down for eight months. Before that, Snohvit in Norway was shut for 1.5 years after a fire in September 2020,” she said. “In a worst-case scenario, Ras Laffan may not restart until 2026, meaning LNG supply in 2026 would be roughly equivalent to 2021 levels.” “This could be a five-year setback; the implications for the world and gas prices are massive,” she added. Japanese Prime Minister Sanae Takaichi has sought to reaffirm ties with Trump as Washington pushes allies to help secure the Strait of Hormuz. Trump said Japan is “stepping up to the plate,” unlike NATO allies. “We’ve had tremendous support… they are really stepping up,” he said. Trump drew a parallel between US strikes on Iran and Japan’s attack on Pearl Harbor during a meeting with Takaichi. “We wanted surprise. Who knows better about surprise than Japan?” he said. Israel said it would refrain from further strikes on a key Iranian gas field, even as Iran intensifies attacks on oil and gas infrastructure across the Gulf. Global fuel supplies remain under pressure due to tensions around the Strait of Hormuz, through which about a fifth of the world’s oil passes. Bahrain’s Ministry of Interior said a warehouse fire was caused by falling shrapnel resulting from Iranian aggression. Civil Defence teams brought the fire under control with no reported injuries. The ministry did not specify whether the attack involved drones or missiles. China is curtailing fertiliser exports to protect its domestic market, industry sources told Reuters , adding pressure to global supplies already strained by the war.In mid-March, Beijing banned exports of nitrogen-potassium fertiliser blends and certain phosphate varieties. The Iraqi armed group Saraya Awliya al-Dam said it carried out three attacks on US bases in the past 24 hours, according to a Telegram post. A US F-35 fighter jet made an emergency landing at a Middle East base after being hit by suspected Iranian fire, sources said. US Central Command confirmed the aircraft was on a combat mission over Iran and landed safely. Iran’s state media claimed the jet was “seriously damaged”. Canada, the UK, France, Germany, Italy, the Netherlands and Japan condemned Iranian attacks on commercial shipping and civilian infrastructure in the Gulf. They warned that Tehran’s actions threaten navigation through the Strait of Hormuz and global energy stability. United Against Nuclear Iran (UANI) said at least 25 tankers carrying Iranian oil were operating west of the Strait of Hormuz, generating over $1 billion in revenue since the war began. Missile sirens and explosions were reported over Jerusalem, interrupting Eid celebrations. Iranian state media said four salvos of missiles were fired, following Israeli claims that Tehran’s military capabilities had been significantly weakened. Netanyahu claimed all senior Iranian officials had been “eliminated” in US-Israel strikes. He added that Iran no longer has the capacity to enrich uranium or produce ballistic missiles, describing the country as “being decimated”. He also said Donald Trump had asked him to hold off further attacks on energy infrastructures of Iran. India’s aviation regulator has asked airlines to avoid airspace over Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Qatar and the UAE, and to prepare contingency plans. However, limited flights by Air India and IndiGo are catering to passenger requirements in West Asia. Prime Minister Narendra Modi condemned attacks on energy infrastructure in calls with Qatar’s Amir Sheikh Tamim bin Hamad Al Thani and Jordan’s King Abdullah II. He expressed concern over the situation and called for dialogue and diplomacy to restore stability. Trump said he may seek $200 billion in additional Pentagon funding, calling it a “small price to pay” to maintain US strength. US Defense Secretary Pete Hegseth justified the demand, saying, “It takes money to kill bad guys.” Trump said that the US is stocked with “vast amounts of ammunition” and is in “good shape” and the funding will ensure US stays in the “best shape”. Damage was reported at refineries in Haifa following Iranian strikes, with parts of the electricity grid affected. Authorities said power had been partially restored. Iran’s Foreign Minister Abbas Araghchi said the strike on Ras Laffan used only a “fraction” of Iran’s capabilities and warned of “zero restraint” if further attacks occur. The US Embassy in Riyadh urged American citizens to leave Saudi Arabia via commercial flights if safe. It said airspace remains open but warned of delays and disruptions due to ongoing missile and drone threats.