Published by Global Banking & Finance Review®
Posted on June 14, 2025
2 min readLast updated: January 23, 2026
Iran has halted gas production at South Pars after an Israeli strike, marking a significant escalation in regional tensions.
(Reuters) -Iran has partially suspended gas production at the world's biggest gas field after an Israeli strike caused a fire there on Saturday, the semi-official Tasnim news agency reported, in what would be the first Israeli strike on Iran's oil and gas sector.
Iran shares the South Pars gas field with Qatar. Striking it would mark a major escalation in the conflict, which had already pushed oil prices up 9% on Friday even though Israel spared Iran's oil and gas on the first day of its attacks.
Israel launched an air offensive against Iran on Friday, killing commanders and scientists and bombing nuclear sites in a stated bid to stop Tehran building an atomic weapon.
The South Pars field is located offshore in Iran's southern Bushehr province and is responsible for the lion's share of gas production in Iran, the world's third largest gas producer after the United States and Russia.
The strike caused a fire, which has been extinguished, the Iranian oil ministry said. The fire broke out in one of the four units of Phase 14 of South Pars, halting production of 12 million cubic metres of gas, Tasnim said.
Iran produces around 275 billion cubic meters (bcm) of gas per year or some 6.5% of global gas output, and consumes it domestically as it cannot export gas due to sanctions.
Iran shares the field with Qatar, which calls the field North Field. Qatar produces 77 million tonnes of liquefied gas from the field with the help of global majors such as Exxon and Shell and supplies the gas to Europe and Asia.
(Reporting by Parisa Hafezi and Enas Alashray; Writing by Dmitry Zhdannikov; Editing by Kevin Liffey and Peter Graff)
Gas production in Iran was partially suspended due to an Israeli airstrike that caused a fire at the South Pars gas field.
The South Pars gas field is the world's largest gas field and is crucial for Iran's gas production, contributing significantly to its output.
Iran produces around 275 billion cubic meters of gas per year, accounting for approximately 6.5% of global gas output.
The Israeli strike led to a 9% increase in oil prices, reflecting the heightened tensions in the region.
While Iran produces a significant amount of gas, Qatar, which shares the South Pars field, produces 77 million tonnes of liquefied gas with the help of global companies.
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