The U.S.-Iran war entered an all-out energy conflict with no limits after peaking on the 18th of last month, when Israel struck Iran's South Pars gas field and Iran retaliated by attacking Qatar's Ras Laffan liquefied natural gas (LNG) facility. With the war now stretching beyond a month and a severe global energy crisis deepening, countries are resorting to desperate measures including electricity rate hikes and a return to coal-fired power.
According to the International Energy Agency (IEA) and international media reports on the 4th (local time), daily oil transit through the Strait of Hormuz reached up to 20 million barrels in 2024 but is now estimated at below 2 million barrels. The IEA noted that transit has effectively been halted. The shortfall exceeds three times the supply deficit of approximately 5 million barrels caused by the two oil shocks of the 1970s. The reduction in LNG volume amounts to approximately 140 billion cubic meters, nearly double the 75 billion cubic meters lost immediately after the Russia-Ukraine war in February 2022.
Since President Trump's announcement of a full-scale offensive against Iran on the 2nd, attacks on energy facilities in the Middle East have intensified further. A recurring pattern has emerged in which previously struck sites are attacked again to prevent restart operations. Iran's Bushehr nuclear power complex, struck by U.S. and Israeli forces on the 4th, has been hit for the fourth time since February 28. The Habshan gas facility in Abu Dhabi, UAE, was also attacked by Iran on the 3rd — its second strike. On the same day, Iran attacked Kuwait's Mina al-Ahmadi refinery for the second time since mid-last month. Repeated second and third strikes on the same targets compound facility damage and further extend the time required to restore energy operations.
