The attack on South Pars, a major component of the world’s largest natural gas deposit shared by Iran and Qatar, drove oil prices higher and intensified concerns over global energy supply disruptions.

Trump said Israel had acted “out of anger” and that Washington had no advance knowledge of the operation.

QatarEnergy reported “extensive damage” and sizeable fires at facilities in Ras Laffan Industrial City following missile strikes, while Saudi Arabia said it intercepted four ballistic missiles aimed at Riyadh and thwarted a drone attack on a gas installation in its eastern region.

The strikes mark a significant expansion of hostilities into critical energy infrastructure in the Gulf, a region central to global oil and gas markets. Ras Laffan processes roughly a fifth of the world’s liquefied natural gas, making it one of the most strategically important energy hubs globally.

Iran carried out additional missile attacks on Thursday targeting Qatari gas facilities and the Saudi capital, according to officials, heightening fears of prolonged disruption to energy flows.

The South Pars field itself is a cornerstone of Iran’s gas production and is geologically linked to Qatar’s North Field, underscoring the cross-border risks posed by military escalation.In a post on X, Trump said Israel’s strike had been a response to developments in the region but warned Tehran against further escalation.

He described Iran’s subsequent targeting of Qatar’s LNG facilities as “unjustified,” adding that Doha had not been involved in the initial attack.

Trump said the United States would prevent further Israeli strikes on South Pars unless Iran “unwisely” targets Qatar again. He also warned that any such move by Tehran would trigger a large-scale U.S. response against the gas field.

Earlier reporting by the Wall Street Journal said Trump had approved Israel’s plan to strike Iran’s gas infrastructure, though the president said Washington had no prior knowledge of the specific operation.

Regional fallout widensIran’s actions reflect a broader pattern since the conflict began nearly four weeks ago, with Tehran targeting not only Israel but also U.S. diplomatic and military facilities across the Gulf. Iranian officials have also warned neighbouring states against facilitating attacks on its territory.

Saudi authorities said their air defences successfully neutralised incoming threats, while Qatar has yet to detail the full operational impact of the damage to its LNG facilities.

The widening scope of attacks on energy infrastructure has raised geopolitical and economic stakes, with markets reacting to the potential for sustained disruption across key supply routes and production hubs.

The conflict, now entering its third week, has shut down shipping through the Strait of Hormuz, a critical maritime corridor through which roughly one-fifth of the world’s oil and liquefied natural gas passes, sending oil prices higher and raising fears of renewed global inflation.

Israeli military spokesperson Lieutenant Colonel Nadav Shoshani said the military had detailed operational plans covering at least the next three weeks, with additional scenarios prepared for a longer campaign.

“We want to make sure that they are as weak as possible, this regime, and that we degrade all their capabilities, all parts and all wings of their security establishment,” Shoshani told reporters.

The Israeli military has framed the campaign as focused on degrading Iran’s ballistic missile infrastructure, nuclear facilities and broader security apparatus. Officials say thousands of potential targets remain inside Iran.

Iran launched drone attacks targeting regional sites, temporarily shutting down Dubai airport and striking a key oil facility in the United Arab Emirates, according to reports cited by regional authorities.

The incidents underscored the widening regional impact of the conflict, which has drawn concern from energy markets and governments reliant on Gulf shipping lanes.

Air traffic at Dubai airport was briefly halted following the drone threat before operations resumed.

The closure of the Strait of Hormuz has become one of the most significant economic consequences of the war.

The narrow waterway between Iran and Oman handles roughly 20% of global oil and liquefied natural gas shipments, making it one of the most strategically important energy chokepoints in the world.

The disruption has already pushed oil prices upward and intensified concerns among policymakers about inflationary pressure on global economies.

U.S. President Donald Trump called on Sunday for an international coalition to help reopen the shipping route, warning that the NATO alliance could face a “very bad” future if members fail to support Washington’s efforts.

Allies responded cautiously, expressing support for diplomatic initiatives to restore navigation through the Strait while signaling reluctance to commit to military action.Iran’s Foreign Minister Abbas Araqchi said Tehran had not requested a ceasefire and had exchanged no messages with Washington, according to Iran’s semi-official Student News Network.

Meanwhile, Iran’s Mehr news agency reported that overnight Israeli strikes killed five people and wounded seven others in Markazi province in central Iran. The report said attacks struck a residential area on the outskirts of Arak city and a residential building in Mahallat county.

Israel has said its campaign remains focused on military and strategic infrastructure linked to Iran’s security apparatus.

The emirate serves as a strategic outlet for exports of Murban crude, with shipments of around 1 million barrels per day flowing through the facility. That volume accounts for roughly 1% of global oil demand, making Fujairah one of the most important energy transit points outside the Strait of Hormuz.

Fujairah’s location on the Gulf of Oman allows crude shipments to bypass the narrow Strait of Hormuz, a chokepoint for global energy supplies that has become increasingly sensitive amid the ongoing regional conflict.

Industry participants closely monitor the emirate because it provides one of the few alternative export routes in the region should shipping through the strait face disruption.

Abu Dhabi National Oil Company, which operates major energy infrastructure in the emirate, did not immediately respond to a Reuters request for comment on the incident or the status of facilities.

Bloomberg News earlier reported that oil loading operations in Fujairah had resumed following the disruption.

The brief halt in activity underscored the vulnerability of energy infrastructure across the Gulf as regional tensions escalate and drone and missile attacks target key supply hubs.

“We see actions by the United States aimed at trying to stabilize energy markets. In this respect, our interests coincide,” Peskov said in remarks carried by Russian media.

The comments followed an announcement by Scott Bessent, the U.S. Treasury secretary, who said Washington had issued a temporary authorization allowing countries to purchase Russian oil cargoes already in transit at sea. The measure extends a similar waiver that had previously applied only to refiners in India.

Bessent said the authorization was narrowly designed to ease market volatility without significantly benefiting the Russian government.

“This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government,” he said in a statement posted on social media.According to Bessent, most Russian energy revenue is generated through taxes assessed at the point of extraction rather than through shipments already in transit.

The decision comes as oil markets react sharply to rising geopolitical risks linked to the widening conflict involving Iran, Israel and the United States.

The waiver has drawn mixed reactions in European capitals, where officials have warned that any easing of restrictions on Russian energy exports could indirectly support Moscow’s war effort in Ukraine.Katherina Reiche, Germany’s economy minister, said she was concerned the measure could help finance Russian military operations.

“I am concerned that we are further filling Putin’s war chest,” Reiche said in Berlin.At the same time, she acknowledged that the U.S. administration faced mounting domestic pressures linked to rising energy costs.“It seems to me that domestic political pressure in the United States is very, very high,” she said.

German Chancellor Friedrich Merz took a firmer stance, saying it was wrong to ease sanctions on Russia for any reason. Similar concerns were voiced by Jonas Gahr Store, the prime minister of Norway, who said sanctions should remain in place.

Oil prices remained elevated above $100 per barrel on Friday as investors reacted to intensifying geopolitical risks. Markets have been particularly sensitive to threats involving the Strait of Hormuz, a critical shipping route for global oil supplies.

Equity markets also declined amid fears that an extended conflict could disrupt energy flows and intensify inflationary pressures on the global economy.

With the conflict entering its third week and no resolution in sight, analysts say investors are increasingly focused on the potential economic consequences of prolonged instability in energy markets.

The discussions inside the White House reflect competing priorities among economic, political and national security advisers as the United States and Israel continue military operations targeting Iran.

Officials involved in the internal discussions said there is no unified view on the desired end point of the conflict, prompting debate among Trump’s advisers over how long military pressure should be maintained.

Some national security hawks are urging the administration to sustain operations against Iran, arguing that continued pressure could weaken the Islamic Republic’s military capabilities and regional influence.

Other advisers are advocating a more limited campaign that would allow the president to declare victory quickly while avoiding a prolonged conflict that could expand across the region.Those differing views have contributed to fluctuations in Trump’s public remarks about the war’s trajectory and possible outcomes.

Members of the administration’s economic team have warned that the conflict could have domestic political consequences if energy prices rise significantly.

The war has already unsettled global energy markets, raising concerns within the administration about the potential for higher gasoline prices in the United States.

Officials familiar with the discussions said economic advisers have cautioned that sustained disruptions to oil supply routes in the Middle East could place additional pressure on consumers and financial markets.

Political advisers close to Trump have argued for a limited and swift operation, according to people familiar with the deliberations. They contend that a shorter campaign could reduce economic fallout while allowing the president to frame the military action as a strategic success.

The competing recommendations have produced what one person close to the discussions described as a complex internal debate over how the administration should define victory and manage the conflict’s political and economic implications.

As the war continues, the policy discussions within the White House are expected to remain fluid as officials monitor developments across the Middle East and assess the broader impact of the confrontation.

The temporary licence was granted as benchmark Brent crude traded around $101 per barrel by 1000 GMT, reflecting continued volatility in energy markets despite Washington’s move. Oil prices have surged nearly 40% since the start of the conflict, driven by fears that escalating hostilities could disrupt global supplies.

Financial markets in Asia also came under pressure as traders weighed the risks of prolonged instability in the Middle East, a region that remains central to global energy production and transportation.

Oil prices jumped about 9% to around $100 a barrel on Thursday as concerns intensified over the durability of supply chains during the ongoing conflict. Traders have been particularly focused on the security of the Strait of Hormuz, the narrow maritime corridor through which roughly one-fifth of the world’s oil supply passes.

Iran has attacked vessels in the strategic waterway during the current confrontation, heightening fears that further disruptions could ripple across global energy markets.

The waiver issued by Washington allows countries to buy Russian petroleum cargoes already at sea, where shipments frequently change ownership during transit. The measure is intended to increase short-term supply availability and reduce upward pressure on prices.

“The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long term,” said Scott Bessent, the U.S. Treasury secretary.

The energy market turbulence comes as the conflict between Israel and Iran entered its third week with continued missile exchanges.

Iran launched another barrage of missiles and drones toward Israel on Friday, while the Israeli military said it conducted air strikes across Tehran and continued operations against the Iranian-aligned Hezbollah militia in Lebanon, including strikes around the capital, Beirut.

Iranian media reported that rallies marking Quds Day began across Iran in support of Palestinians. Residents in Tehran and the nearby city of Karaj reported hearing explosions and fighter jets during Israeli strikes, according to local media coverage.

Energy traders have closely followed comments by Donald Trump regarding the likely duration of the conflict, which has added to volatility in oil markets and global equities.

The sharp rise in crude prices has contributed to declines in U.S. stocks and broader market unease as investors assess the potential for prolonged disruptions to energy flows.

The waiver allowing limited Russian oil transactions reflects Washington’s attempt to cushion global markets while the conflict continues to unfold across the region.

The assurance was conveyed after recent conversations between S. Jaishankar, India’s foreign minister, and his Iranian counterpart Seyed Abbas Araghchi, according to the Indian source, who declined to be identified because they were not authorised to speak publicly.

India, the world’s third-largest oil consumer, depends on the Strait of Hormuz for roughly 40% of its crude imports, making the security of shipping routes a key concern amid regional tensions.

India’s foreign ministry confirmed that the two foreign ministers had held three conversations in recent days. The most recent discussion focused on maritime safety and the protection of India’s energy supply lines.

“Beyond that, it would be premature for me to say anything,” foreign ministry spokesperson Randhir Jaiswal told a weekly press briefing.

In a statement following the talks, Iran’s foreign ministry said the United States should be held responsible for the “insecure situation and problems arising for shipping in the Persian Gulf,” but neither side publicly mentioned any agreement on safe passage for Indian vessels.

On Thursday the Suezmax tanker Shenlong, carrying Saudi crude oil, arrived at a port in Mumbai after transiting the Strait of Hormuz, according to shipping data from the London Stock Exchange Group.

The Liberia-flagged vessel was the first crude tanker to reach India from the Middle East since fighting involving Iran, the United States and Israel erupted in late February. The cargo was purchased by state-run Bharat Petroleum Corporation, a source with direct knowledge of the matter said.

The Indian source added that two other foreign-flagged tankers believed to be carrying oil bound for India had also recently crossed the strait.

India said on Wednesday that 28 Indian-flagged vessels were operating west and east of the Strait of Hormuz, carrying a total of 778 Indian sailors.

Authorities, shipping companies and recruitment agencies are coordinating with Indian embassies and local authorities to ensure the safety of seafarers, the petroleum ministry said.

India has also given safe harbour to 183 Iranian sailors after a vessel docked in the country following the outbreak of the conflict. New Delhi had allowed three Iranian ships returning from a naval exercise in the Bay of Bengal to dock; one of the vessels was later sunk by a U.S. submarine in international waters, while another sought assistance from Sri Lanka.

The estimate, presented to members of Congress on Tuesday, represents only a partial accounting of the costs incurred since the military campaign began on Feb. 28 with coordinated U.S. and Israeli airstrikes on Iranian targets.

The White House has not publicly released an overall assessment of the war’s cost or provided a timeline for how long the conflict might continue.

Several congressional aides said the administration is expected to submit a request to lawmakers for additional war funding in the coming weeks. Estimates discussed among officials suggest the request could reach about $50 billion, though some aides cautioned that figure may underestimate the eventual cost.

Members of Congress will likely be required to approve any additional funding package as the Pentagon seeks resources to sustain operations and replenish weapons stocks used during the campaign.

Administration officials told lawmakers that roughly $5.6 billion worth of munitions were expended during the first two days of strikes alone, underscoring the intensity of the opening phase of the campaign.

Some lawmakers have voiced concern that the pace of weapons use could strain U.S. military inventories at a time when defense manufacturers are already working to expand production capacity to meet global demand.

Last week, Trump met with executives from seven defense contractors as the Pentagon explored ways to accelerate replenishment of critical weapons systems and other military supplies.

Democratic lawmakers have called for public testimony under oath from administration officials to clarify the strategy and objectives of the war, including its expected duration and Washington’s plans for Iran once active combat operations end.

Speaking during a visit to Kentucky on Wednesday, Trump said “we won” the war but indicated that U.S. forces would remain engaged until operations were completed.

The conflict has expanded beyond Iran’s borders into Lebanon and has disrupted global energy markets and maritime transport routes. Around 2,000 people have been killed so far, most of them in Iran and Lebanon, according to figures cited in the briefing.

The attacks followed nearly two weeks of conflict triggered by joint U.S. and Israeli air strikes on Iran, a war that has killed around 2,000 people and sent shockwaves through global energy and shipping markets. The United Nations Children’s Fund (UNICEF) said more than 1,100 children were among those killed or injured in the fighting.

Maritime security sources and port officials said explosive-laden Iranian boats appeared to have struck two fuel tankers in Iraqi waters, igniting fires and killing one crew member. Projectiles also hit three merchant vessels in Gulf waters, according to maritime risk monitoring firms tracking the incidents.

Oil prices rose nearly 5% on Wednesday and extended gains in Asian trading on Thursday as traders assessed the risk of prolonged supply disruptions in one of the world’s most critical energy corridors.

Crude had surged to nearly $120 a barrel earlier in the week before easing to around $90, but renewed attacks on shipping raised fears of further volatility. Global equities also reacted to the tension, with Wall Street’s main indexes falling and Asian stocks following the downward trend.

Tony Sycamore, an analyst at IG, said the tanker attacks appeared to coincide with efforts by energy authorities to stabilize markets.“This appears to mark a direct and forceful Iranian response to the IEA’s overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” Sycamore said.

Iran signaled it intends to inflict sustained economic pressure as the conflict spreads across the Middle East. A spokesperson for Iran’s military command warned the United States that oil prices could soar dramatically.

“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” the spokesperson said in remarks reported on Wednesday.

The war has already prompted governments to prepare what could become the largest coordinated release of strategic oil reserves since the 1970s in an attempt to cushion the global economy from an escalating fuel shock.

Speaking at a campaign-style rally in Kentucky ahead of November midterm elections, where his Republican Party is trailing in several races, Trump said the United States had prevailed militarily but suggested operations might continue.

“We don’t want to leave early do we?” Trump said on Wednesday. “We got to finish the job.

”The conflict has widened beyond Iran’s territory to shipping lanes and energy infrastructure across the region, heightening concerns among governments and markets about the stability of global oil supply and maritime trade routes.

The Paris-based agency is expected to publish the recommendation at 1300 GMT on Wednesday, shortly before leaders of the Group of Seven hold a virtual meeting chaired by Emmanuel Macron to discuss coordinated measures to stabilize energy markets.

A source said the proposed release would be spread over at least two months. Sara Aagesen, Spain’s energy minister, said participating countries could have up to 90 days to release the volume if the plan is adopted.

Aagesen described the proposal as unprecedented in scale compared with previous coordinated actions. During the energy shock following the Russian invasion of Ukraine, around 182 million barrels were released from strategic reserves, she said.

The current proposal would more than double that amount, reflecting concerns among major economies about the impact of the Iran conflict on global oil markets and energy security.

The International Energy Agency coordinates emergency oil stockpiles among major consumer nations, a system established after the oil shocks of the 1970s to provide a buffer against severe supply disruptions.

Leaders of the Group of Seven are scheduled to discuss the proposal in a meeting led by France on Wednesday after the bloc’s energy ministers voiced support for using strategic reserves to counter market volatility.

“In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves,” G7 energy ministers said in a joint position.

A G7 source told Reuters that while there is currently no physical shortage of crude oil among member states, sharply rising prices and market volatility have prompted governments to consider coordinated intervention.

Oil prices initially surged following the escalation of the U.S.-Israeli conflict with Iran, though markets later rebounded as traders questioned how effective a large reserve release would be in easing supply concerns.