Oil Rebounds Amid Iran’s South Pars Attack

WTI crude futures jumped above $99 per barrel on Thursday, resuming the rally as fresh attacks on key energy infrastructure in the Middle East heightened concerns over disruptions to global oil and gas flows. Iran launched missile strikes on a Qatari facility housing the world’s largest LNG export plant, marking one of several energy assets Tehran vowed to target following an Israeli strike on Iran’s South Pars gas field. US President Donald Trump said he had prior knowledge of the Israeli attack on the South Pars field but urged against further strikes on Iranian energy sites. Meanwhile, Trump temporarily waived the Jones Act to help reduce the cost of transporting oil, gas, and other commodities across the US, allowing foreign-flagged vessels to operate between US ports for the next 60 days. Oil prices have surged roughly 50% since the war began, as the Iran conflict effectively shut the Strait of Hormuz and prompted major Middle Eastern producers to significantly curb output.

WTI crude oil futures reclaimed session gains to trade above $97.3 per barrel on Wednesday as the threat of an escalating regional conflict and structural supply disruptions in the Middle East countered aggressive federal efforts to stabilize domestic fuel markets. This intraday rebound follows reports of US-Israeli airstrikes on Iran’s South Pars gas field which have renewed fears of a prolonged energy shock despite President Trump issuing a 60-day waiver of the Jones Act. While a 6.2 million-barrel inventory surge and the Federal Reserve’s hawkish hold at the 3.5 to 3.75 range initially pressured prices, the effective closure of the Strait of Hormuz continues to push energy prices higher. Although strategic reserve releases and a 63,000-barrel per day increase in domestic refinery runs provide a technical buffer, retaliatory threats from Tehran following the killing of intelligence minister Esmaeil Khatib maintain a high risk premium in the December contract.

WTI crude oil futures rebounded to near $98 a barrel following reports of an attack on Iran’s South Pars gas field, which is shared with Qatar. Iranian state TV said US and Israeli airstrikes hit South Pars and nearby petrochemical facilities in Asaluyeh, marking the first known strike on Iran’s upstream energy infrastructure in this conflict. South Pars reached record daily output of 730 million cubic meters in 2025. Overnight, Iranian attacks on Israel and Gulf states continued as Tehran vowed revenge for the killing of security chief Ali Larijani, while Israel said Iranian intelligence minister Esmaeil Khatib was killed. President Trump said the US could end the war with Iran “in the near future.” Also, Iraq plans to resume exports via a pipeline to Turkey’s Ceyhan port, though volumes will cover only a fraction of prewar output. Meanwhile, API data showed US crude inventories rose 6.56 million barrels last week, far exceeding expectations.