New conflicts in the Middle East have affected Iran's energy sector as Israel launched an attack on a gas facility connected to the country's largest gas field.
Israel's Attack on the Gas Field
On Saturday, Israeli airstrikes hit the Phase 14 processing plant of the South Pars gas field, causing a significant explosion and fire, according to reports from the semi-official Tasnim news agency.
Economic Consequences for Iran
The strike led to the shutdown of a nearby production platform. Iran is already facing severe power outages, with the Iran Chamber of Commerce estimating the economic cost of these outages at around $250 million per day.
Global Market Reactions to the Events
Oil prices had already reacted to market tension. Goldman Sachs analysts raised their short-term oil price forecasts by $2 to $3 a barrel in response to rising tensions, predicting potential prices to spike above $100 per barrel if the situation escalates further.
The escalation of conflict in the Middle East poses new risks for both the Iranian economy and global energy markets, creating uncertainties in short-term price forecasts.
