Middle East conflict continues to escalate, Iran claims Persian Gulf energy facilities as target, Brent oil briefly rises above $108.

As the conflict in the Middle East continues to escalate, the global energy market is once again facing impacts. Iran warned on Wednesday that following Israeli attacks on its South Pars natural gas field, energy facilities in the Persian Gulf region have become "legitimate targets for retaliation," further exacerbating concerns about the security of crude oil and natural gas supplies. According to reports, energy facilities in Qatar, Saudi Arabia, and the United Arab Emirates have been identified as potential targets for attack. Iran stated that attacks on its energy infrastructure "will not go unanswered." An unnamed senior Israeli official confirmed that Israel did indeed strike the South Pars gas field. The gas field is shared by Iran and Qatar and is one of the largest in the world, and this action is seen as a sign of further escalation in the conflict. Qatari Foreign Ministry spokesperson Ansari described Israel's actions against South Pars as "dangerous and irresponsible." Due to the sharp increase in geopolitical risks, international oil prices surged, with Brent crude temporarily rising above $108 per barrel. Since the US and Israel launched military actions against Iran on February 28, international oil prices have risen by nearly 50% cumulatively. Meanwhile, Iran has increased strikes on regional targets. On Wednesday, Iran launched a new round of missiles and drones towards the UAE, Saudi Arabia, and Kuwait, as well as carrying out an attack on Tel Aviv, Israel, resulting in at least two deaths. Prior to this, Iran confirmed the assassination of its security affairs chief, Ali Larigani, and the Iranian military vowed to retaliate. In addition, Iran has accused the US and Israel of continuing to carry out airstrikes within its territory. The US has also intensified its military actions. On Tuesday night, US forces dropped heavy bunker-buster bombs near Iranian missile facilities near the Strait of Hormuz in an attempt to restore the commercial passage capability of this key waterway. The Strait of Hormuz carries about one-fifth of global oil transport, and it is a focal point of the current conflict. Despite the tense situation, some signs indicate that the waterway is not completely closed. Iran continues to transport crude oil through the strait at levels close to pre-war levels, and shipping activities at its main export hub on Kharg Island appear to be largely unaffected. However, Iranian Foreign Minister Abbas Araqchi stated that new transit rules for the Strait of Hormuz will need to be established in the future to ensure maritime safety under specific conditions. On the diplomatic front, US President Trump once again called on allies to participate in safeguarding maritime security in the Strait of Hormuz, but the response has been limited. He stated on social media that US allies should "take responsibility" and assist in maintaining the passage of the waterway, while also criticizing the lack of willingness of NATO countries to participate in the conflict. Meanwhile, senior officials in the UAE also hinted that regional countries may be willing to participate in security operations in the strait, emphasizing that this should be a shared responsibility. From a broader geopolitical perspective, this round of conflict is rapidly spreading. In addition to Iran's mainland, Israel has intensified its military actions in Lebanon, engaging in ongoing clashes with the Iran-backed Hezbollah. The Lebanese government stated that the conflict has resulted in more than 900 deaths. Overall, this round of war has led to over 4000 deaths, with the majority occurring within Iran's borders. The energy shock is quickly transmitting to the global economy level. Gasoline prices in the US have recently risen to around $3.79 per gallon, the highest level since October 2023. Against the backdrop of lingering inflation pressures, this poses a new political pressure on the US government. The White House stated that once the conflict ends, energy prices are expected to quickly fall and called on the public to remain patient. At the same time, opposition to the war within the US is also on the rise. Senior officials at the US National Counterterrorism Center, Joe Kent, announced his resignation, publicly opposing military actions against Iran and stating that the US is being "dragged into the conflict" by Israel. Market participants generally believe that the current oil price trend will depend on two key variables: the condition of passage through the Strait of Hormuz, and whether the conflict further expands to more energy infrastructure. If supplies continue to be disrupted, international oil prices may remain high or even climb further, posing greater pressure on global inflation and economic growth.