Israel launched a strike on Saturday targeting Iran’s energy sector for the first time in its current military campaign, hitting installations at the South Pars gas field, a major fuel depot in Tehran, and a nearby oil refinery.

The attack marked a significant escalation in Israel’s efforts to curtail Iran’s nuclear and military capabilities, as Tehran partially suspended gas production from one of the world’s most strategic natural gas reserves.

Below is an overview of Iran’s oil and gas infrastructure, key export data, and the broader impact of international sanctions on its energy industry.

South Pars: The heart of Iran’s gas production

• The South Pars gas field, shared with Qatar (which refers to its section as North Dome), contains about one-third of the world's largest reservoir of natural gas.
• The field holds an estimated 1,800 trillion cubic feet of usable gas, enough to supply the world for 13 years or to power the United States for 35 years.
• Most of Iran’s output is used domestically due to sanctions and infrastructure limitations.
• In 2023, Iran produced 266.25 billion cubic metres (bcm) of natural gas, with 255.5 bcm consumed domestically, and only 15.8 bcm exported, according to the Gas Exporting Countries Forum.
• Saturday’s attack reportedly struck four units of Phase 14 at South Pars, located roughly 200 km from Qatar’s installations, which are often developed with international energy majors such as ExxonMobil and ConocoPhillips.
   

Oil production and refining capacity

• Iran is the third-largest oil producer in OPEC, pumping about 3.3 million barrels per day (bpd) of crude and an additional 1.3 million bpd in condensates and other liquids.
• Total production represents around 4.5% of global oil supplies.
• About 1.8 million bpd of crude and condensate were exported in May 2025, while the remaining volumes were processed in domestic refineries with a combined capacity of 2.6 million bpd, according to consultancy FGE.
• Oil product exports, including LPG, were approximately 750,000 bpd last month.
   

Main export routes and infrastructure

• Iran exports 90% of its crude via Kharg Island, located in the Persian Gulf.
• The country’s main hydrocarbon production is concentrated in Khuzestan province (oil) and Bushehr province (gas and condensate).
• Damage to the South Pars facility, especially near the border with Qatar, raises concerns about regional gas supply stability, although most of Iran’s gas is not exported.
   

Sanctions and resilience

• Iran’s peak oil production reached 6 million bpd in 1974, more than 10% of global output at the time.
• Since 1979, multiple waves of U.S. and EU sanctions have curtailed Iranian oil exports, with the most severe restrictions imposed after the U.S. withdrawal from the 2015 nuclear deal in 2018.
• Despite sanctions, exports surged under the Biden administration and have remained high under President Trump’s second term, partly due to looser enforcement and Iran’s evasion tactics.
   

China’s role in sustaining exports

• China remains the largest buyer of Iranian oil, primarily through private refiners.
• Beijing rejects unilateral sanctions and has continued importing Iranian crude despite U.S. pressure.
• Ship-to-ship transfers and manipulation of vessel tracking systems have helped Iran maintain flows.
   

Market impact and OPEC dynamics

• With Iran’s oil exports at multi-year highs, disruptions from military attacks could impact global markets.
• Saudi Arabia and other OPEC producers hold spare capacity that could offset losses, but with rising output targets among member states, that cushion is narrowing.
• As tensions rise in the Gulf, the attacks on South Pars and nearby facilities signal a new phase in the confrontation, one that threatens not only Iran’s domestic energy supply but also broader regional and global energy stability.

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