How the US-Israeli war with Iran is disrupting oil and gas

How the US-Israeli war with Iran is disrupting oil and gas
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Summary More than 40 key energy assets have been damaged, causing the largest supply disruption in history, according to IEA.

(Reuters) – The US-Israeli war on Iran and Tehran's retaliatory attacks on Gulf neighbours have damaged major energy facilities and disrupted shipping through the Strait of Hormuz, which handles about 20% of global oil and liquefied natural gas flows.

US President Donald Trump has issued a fresh ultimatum to Iran to reopen the Strait by the end of Tuesday. Iran has rejected the ultimatum and threatened further attacks on Gulf infrastructure.

More than 40 key energy assets have been damaged, causing the largest supply disruption in history, the International Energy Agency said.

Below are the main disruptions so far:

IRAN

US forces struck military targets at Kharg Island on April 7, Iran's main oil export terminal.

Parts of the South Pars gas field and the Asaluyeh processing hub were attacked by Israel on March 18.

Israeli strikes damaged fuel depots across mainland Iran, including Tehran.

Premises of the Bushehr nuclear power plant were struck, the International Atomic Energy Agency (IAEA) confirmed.

SAUDI ARABIA

Iran attacked Saudi Arabia's Jubail petrochemical complex on April 7, ⁠Iran said.

Saudi Arabia has cut oil output by about 2 million barrels per day (bpd) to roughly 8 million bpd, since the war began.

Operations were suspended at the 550,000-bpd Ras Tanura refinery.

Crude exports were partly diverted to Yanbu port on the Red Sea.

IRAQ

Output from Iraq's main southern fields was at around 900,000 bpd, Basra Oil Company told Reuters on April 7. It was down from around 1.3 million bpd at the beginning of March.

Two drones hit BP-operated North Rumaila oilfield, wounding three workers.

Iraq resumed pipeline crude exports from northern Kirkuk fields via Turkey and plans overland exports to Syria.

KUWAIT

Iranian drone attacks caused fires and severe damage at oil facilities, Kuwait Petroleum Corporation (KPC) said.

Kuwait cut oil output and declared force majeure earlier in March.

Units at KPC's Mina al-Ahmadi and Mina Abdullah refineries were hit.

Full capacity recovery can take 3-4 months, KPC said.

QATAR

Qatar declared force majeure on LNG shipments on March 4, disrupting about 20% of global LNG trade.

Damages to its LNG facilities reduced 17% of its ⁠export capacity.

Shell's Pearl gas-to-liquids plant at Ras Laffan was shut.

UNITED ARAB EMIRATES

Habshan gas processing complex, one of the world's largest, shut on March 19 after damage from intercepted missile debris.

Debris from further interceptions killed one person and damaged facilities again on April 3.

ADNOC's adjusted LNG output due to export disruptions.

Borouge's petrochemicals plant was damaged by falling debris.

TotalEnergies said it lost 15% of its Middle East upstream output, including offshore the UAE.

BAHRAIN

Bapco Energies declared force majeure after an attack on its 380,000-bpd Sitra refinery.

An Iranian strike set a storage ⁠tank on fire on April 5, Babco said.

Gulf Petrochemical Industries Company said a unit caught fire after a drone attack the same day.

SHIPPING

Shipping through the Strait of Hormuz has nearly halted since Iran declared it closed on March 2.

Iran threatened to mine the Strait if its southern coast or islands are attacked.

It warned its allies could shut the Bab ⁠El-Mandeb Strait, an alternative route for Saudi oil exports.

Tehran barred ships linked to the US, Israel and their allies.

It allowed some vessels, including from Pakistan, Iraq, China and India to pass.

One French group CMA CGM container ship transited the Strait last week.

Two Qatari LNG tankers were stopped, however, on April 6. No LNG cargoes ⁠have exited the Gulf so far.

Trump has said the US Navy could escort tankers, but the Navy has so far declined industry requests.

China and Russia vetoed on April 7 a Bahraini resolution encouraging states to coordinate efforts to protect commercial shipping in the Strait of Hormuz.

It would take months to fully restore flows through the Strait after the conflict ends, the US Energy Information Administration (EIA) said on April 7.