US-Israeli Strikes on Iran Trigger Regional Energy War

A joint U.S.-Israeli offensive began on February 28, 2026, escalating into a regional conflict following the assassination of Iranian Supreme Leader Ayatollah Ali Khamenei. Under Operation Epic Fury, the United States and Israel launched airstrikes against Iran's South Pars Gas Field and refining facilities in Asaluyeh, which provide 70% of Iran's domestic gas. The strikes caused widespread fires and halted gas supplies to Iraq, removing 3,100 megawatts from the Iraqi power grid.

Iran responded by declaring a new phase of confrontation. The Islamic Revolutionary Guard Corps (IRGC) launched ballistic missiles at Qatar's Ras Laffan Industrial City, causing extensive damage to the world's largest liquefaction facility. Iranian suicide drones and missiles also targeted U.S. military bases in Erbil, Iraq, and Kuwait. Additionally, Iranian-backed militias in Iraq launched drone and rocket attacks against the U.S. embassy in Baghdad and other strategic sites.

In retaliation for militia activity, U.S. and Israeli forces conducted airstrikes against the Popular Mobilization Forces (PMF) in Salahuddin and Nineveh provinces, and targeted residential areas in Baghdad and Mosul. While the militia Kata'ib Hezbollah offered a conditional five-day ceasefire, the IRGC continues to threaten regional energy assets in Saudi Arabia, Qatar, and the UAE. The conflict has severely disrupted energy markets, with Brent crude prices surging above $109 per barrel and the UAE reporting production shut-ins due to Iranian control of the Strait of Hormuz.