Israel and Iran are engaged in attacks for a fifth straight day, with Israel targeting Iran’s nuclear facilities, military sites, oil and gas facilities, and state TV headquarters. The escalation has raised fears of a widening conflict and turmoil in global energy markets. Iran is one of the top global producers of oil and gas and holds the world’s second largest proven natural gas reserves and the third-largest crude oil reserves.
With about 157 billion barrels of proven crude oil, Iran holds about a quarter (24 percent) of the Middle East’s and 12 percent of the world’s proven oil reserves. Iran is the ninth largest oil producer globally and the fourth largest within OPEC, producing about 3.3 million barrels of crude oil per day. It exports roughly 2 million barrels of crude and refined fuel each day. In 2023, Iran’s net oil export revenues were estimated at $53bn, up sharply from $37bn in 2021.
Iran has the world’s second largest proven natural gas reserves after Russia. They are estimated at 1,200 trillion cubic feet (34 trillion cubic metres), which accounts for 16 percent of global reserves and 45 percent of OPEC’s total. Iran is the third highest producer of natural gas behind the US and Russia with production reaching 9,361 billion cubic feet (265 billion cubic metres) in 2023, accounting for at least 6 percent of global production.
Israel has struck multiple energy facilities, including the South Pars gasfield, Fajr Jam gas plant, Shahran oil depot, Shahr Rey oil refinery and Tehran fuel depots. The attacks have raised concerns about the impact on global energy markets, with oil prices soaring nearly 7 percent in a single day. Prices have held steady about that level since.
Iran’s oil facilities are spread across several regions, mainly in the south and west of the country. These include onshore oilfields, offshore platforms, refineries, export terminals and pipelines. Nearly all of Iran’s crude oil flows through Kharg Island, the country’s main export terminal, which handles close to 1.5 million barrels per day. Major onshore oilfields include Ahvaz Field, Gachsaran Field, Marun Field, Agha Jari, Bibi Hakimeh and Karanj fields.
Iran’s gas facilities are concentrated primarily in the south, especially along the Gulf, with major gasfields and processing plants. The South Pars gasfield, which Iran shares with Qatar, is the largest gasfield in the world. Other important gasfields are the North Pars, Golshan, Ferdowsi, Kangan and Nar fields. Iran’s main gas-processing centre is the South Pars Gas Complex, located in Bushehr province.