Targeting of energy facilities turned Iran war into worst-case scenario for Gulf states

An Israeli drone strike on Iran's Asaluyeh gas complex on March 18, 2026, damaged four plants treating gas from the shared South Pars field, prompting Iran to retaliate hours later with missile strikes that caused extensive damage to Qatar's Ras Laffan liquefied natural gas facility and to oil infrastructure in Saudi Arabia, the UAE, and Kuwait. The escalation marks a shift from earlier fighting—during a June 2025 conflict, energy infrastructure was largely spared—to direct targeting of critical export facilities that generate the revenue underpinning Gulf states' regional power. Qatar's state petroleum company reported additional attacks on March 19 targeting LNG facilities, while Saudi authorities reported Iranian strikes on a Red Sea refinery at Yanbu and attempted strikes on the East-West pipeline that bypasses the Strait of Hormuz. The targeting threatens to cripple export capacity from facilities that have transformed Iran, Qatar, and Saudi Arabia into global economic powers over three decades.