Oil prices surged more than 5 percent on Wednesday following an Israeli strike on Iran’s South Pars gasfield, intensifying the ongoing United States-Israeli war on Iran. Brent crude rose to $108.66 a barrel, while US West Texas Intermediate crude climbed to $98.65, widening the price gap between the two benchmarks to its largest since May 2019. Iranian state media reported that facilities linked to the South Pars field, the world’s largest gasfield off Bushehr province, were attacked.

In response, Iran’s Revolutionary Guard threatened to target oil and gas infrastructure in Qatar, Saudi Arabia, and the United Arab Emirates, raising fears of further energy supply disruptions. Later, Qatar reported a fire at its Ras Laffan gas facility following an Iranian missile strike, though authorities said it was contained. The conflict has disrupted oil and gas exports across the Middle East, halting most shipments through the Strait of Hormuz, which handles 20 percent of global oil and LNG supplies.

The Trump administration responded by issuing a 60-day waiver of the Jones Act to ease domestic fuel transport and authorizing certain transactions involving Venezuela’s PDVSA. Meanwhile, Iraq resumed oil exports after reaching an agreement with the Kurdistan Regional Government.