The growing Israel-Iran tensions have led to the attack of some of the main oil & gas refineries causing a global spinning fear that it could destabilize the energy market and increase oil prices.

The current war between Israel and Iran has escalated further as Israel attacked vital Iranian nuclear, military and oil & gas facilities on five successive days. The bombing of large oil and gas facilities such as the South Pars gas field and Tehran oil product refineries has caused uproar over the possible energy shortage in the world energy market.

Iran is among the biggest producers of oil & gas in the world and it shares the second-biggest reserves of natural gas and the third-biggest reserves of crude oil in the globe. It has a massive network of oilfields, refineries and export terminals, particularly Kharg Island, which is vital to the global energy circulation.

With the attacks, the price of oil ran up close to 7 percent in the wake of concern over an expanded war in the region, which would have an impact on the Strait of Hormuz through which more than half of the oil transported worldwide flows. After all, analysts caution that the escalation might have disastrous effects on the stability of oil & gas markets across the globe.

Although Iran is not allowed to go to the full extent of producing oil & gas, its exports continue to be an important source of national income. The economic importance of the sector was evident as Iran received an income of $53 billion owing to oil exports in 2023.

With all this tension, international markets are closely monitoring events that could potentially shock the already anxious oil and gas industry.