Live Updates: Iran war escalates, energy prices spike after Israeli strike on South Pars gas field.
The escalating conflict between Iran and Israel has spiraled into a new and dangerous phase, marked by intensified military strikes across the region, a deepening global energy crisis, and complex diplomatic maneuvers. Following an Israeli strike on Iran’s crucial South Pars gas field, Tehran unleashed a wave of retaliatory attacks on Gulf states, while Israel pounded targets in the Iranian capital. The relentless assaults on critical energy infrastructure have sent global oil and natural gas prices soaring, triggering fears of widespread economic instability and stagflation.
Escalation and Retaliation Across the Middle East
Early Friday, March 20, 2026, Israeli military forces launched a "wave of strikes" targeting infrastructure of the "Iranian terror regime" in the heart of Tehran, according to the Israel Defense Forces. The attacks occurred as Iranians marked Nowruz, the Persian New Year, with activists reporting hearing strikes around the capital. This offensive followed Israel’s pledge a day earlier to refrain from further strikes on key Iranian gas fields.
In immediate and widespread retaliation, Iran unleashed a barrage of missile and drone attacks across the Persian Gulf region, impacting multiple countries. Kuwait’s military reported early Friday that Iran had launched missile and drone strikes on the country. Explosions were heard as air defense systems intercepted hostile attacks. An earlier drone strike on Kuwait’s state-owned Mina Al-Ahmadi refinery sparked a fire, though no injuries were reported. The Kuwaiti military had previously stated it was targeted with 18 Iranian drones over 24 hours, with two striking the refinery.
Heavy explosions also shook Dubai early Friday as air defenses intercepted incoming fire, coinciding with residents observing Eid al-Fitr. The UAE Ministry of Defense confirmed intercepting seven Iranian missiles and 15 drones on Thursday alone, bringing the total since the war began to 349 missiles and over 1,700 drones. Saudi Arabia also reported a drone hit its SAMREF refinery in the port city of Yanbu on the Red Sea, with damage assessment underway. Authorities in Abu Dhabi were forced to shut down operations at its Habshan gas facility and Bab field after Iranian overnight attacks, calling it a "dangerous escalation."
Meanwhile, Iran continued its own retaliatory attacks on Israel, sending millions to shelters. Sirens blared across a wide swath of northern Israel, from Haifa to Galilee and the Lebanese border. Overnight, Iran launched at least six waves of missiles at Israel, including new attacks using cluster bombs. While most were intercepted, debris and bomblets caused casualties. An elderly man was lightly injured in Tel Aviv, a Thai agricultural worker was killed in Adanim (central Israel), and a home in Jaljulia was hit without reported injuries. In the Israeli-occupied West Bank, debris from an intercepted missile hit a beauty salon near Hebron, killing four people, including a 32-year-old woman six months pregnant, and injuring a young girl.
Global Energy Markets in Turmoil
The devastating attacks on critical energy infrastructure sent shockwaves through global markets, driving oil and natural gas prices to unprecedented levels. Brent crude, the international benchmark, surged to $116.38 per barrel, a stark increase from under $73 per barrel before the war began on February 28. The European TTF benchmark for natural gas prices traded 24% higher on Thursday. In the U.S., the average price for a gallon of regular gasoline hit $3.88, with economists estimating the average U.S. household would spend an additional $740 on gas this year due to the conflict.
QatarEnergy confirmed that Iran’s missile attack on Ras Laffan Industrial City caused "extensive damage to the Pearl GTL (Gas-to-Liquids) facility," with subsequent attacks early Thursday morning targeting several other LNG facilities, resulting in "sizeable fires and extensive further damage." Saad Sherida al-Kaabi, Qatar’s energy minister, estimated the damage would lead to an estimated $20 billion in annual revenue loss and reduce Qatar’s liquefied natural gas capacity by 17%. Repairs are expected to take at least five years, significantly impacting supply to European and Asian markets.
The Strait of Hormuz, a vital shipping lane through which Iraq previously exported the majority of its oil and a critical conduit for global energy supplies, remains largely paralyzed by Iran’s incessant missile and drone attacks on commercial vessels. Iranian lawmakers are now considering a measure that would require countries using the Strait to "pay tolls and taxes" to the Islamic Republic of Iran, further exacerbating concerns about global energy security. Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani condemned the attacks, warning of "significant repercussions for global energy supplies."
International Reactions and Diplomatic Maneuvers
The escalating crisis prompted a flurry of diplomatic activity and conflicting statements. President Trump, in a series of posts on Truth Social, declared that "NO MORE ATTACKS WILL BE MADE BY ISRAEL" on the South Pars field, but issued a stern warning that if Iran continued to attack Qatar’s liquid natural gas facilities, the U.S. would "massively blow up the entirety of the South Pars Gas Field." Trump also claimed the U.S. "knew nothing" about Israel’s initial strike on South Pars and stated Qatar was "in no way, shape, or form, involved with it." During an Oval Office meeting with Japanese Prime Minister Sanae Takaichi, Trump defended not informing allies about planned strikes, saying "we wanted surprise," and provocatively asked the Japanese reporter, "Why didn’t you tell me about Pearl Harbor?" He also dismissed the idea of putting more U.S. troops in Iran, though adding he "certainly wouldn’t tell you" if he were.
Israeli Prime Minister Benjamin Netanyahu, while confirming Israel was "holding off" on additional attacks against the Iranian gas field at Trump’s request, asserted that Israel "acted alone" in the initial strike. He also addressed claims that Israel dragged the U.S. into the war, saying, "Does anyone really think that someone can tell President Trump what to do?" Netanyahu further speculated that Iran’s leadership structure was "not clear" after targeted killings, noting the absence of the new supreme leader, Mojtaba Khamenei.
Director of National Intelligence Tulsi Gabbard, testifying before the House, acknowledged differences in U.S. and Israeli war aims. She stated that President Trump’s objectives focused on destroying Iran’s ballistic missile capabilities and the IRGC navy, while Israel’s focus has been on "disabling the Iranian leadership." Gabbard also reiterated that Iran "maintained the intention to rebuild its infrastructure and nuclear enrichment capability" and continued to refuse IAEA access to key facilities after last year’s 12-Day War.
Amidst the chaos, six U.S. allies – the United Kingdom, France, Germany, Italy, the Netherlands, and Japan – issued a joint statement expressing their "readiness to contribute to appropriate efforts to ensure safe passage through" the Strait of Hormuz, though without providing specific details. They condemned Iran’s attacks on commercial vessels and civilian infrastructure. A team of U.K. military planners is reportedly working with U.S. Central Command on options to reopen the Strait. Regionally, Lebanese President Joseph Aoun sought to halt fighting between Israel and Hezbollah, stressing the "necessity of a ceasefire." Oman’s Ministry of Foreign Affairs condemned Iran’s attacks on Gulf neighbors and called for diplomacy to end the conflict, emphasizing "addressing the root causes of the conflict through dialogue."
Military Operations and Other Developments
The U.S. military continued its aggressive campaign, with Joint Chiefs Chairman Dan Caine stating that precision strikes were conducted against over 90 targets on Iran’s Kharg Island, historically handling 85-95% of the country’s crude exports. He also noted that Thursday would see the "largest strike package yet," with the U.S. attacking "deeper into Iranian territory," including "key" Iranian Navy infrastructure in the Caspian Sea for the first time. U.S. AH-64 attack helicopters have also been striking Iran-backed militia groups in Iraq.
Meanwhile, a U.S. F-35 aircraft reportedly conducted an emergency landing at a regional U.S. airbase after a combat mission over Iran, with the pilot in stable condition. The USS Gerald R. Ford aircraft carrier, after weeks of a broken toilet system and a recent fire that left sailors sleeping on floors, was headed to a U.S. Navy port on the Greek island of Crete for repairs and much-needed downtime. The carrier has been deployed for 268 days, nearing a record for longest U.S. aircraft deployment since the Vietnam War.
In the cyber domain, the Justice Department announced the disruption of a cyberattack allegedly organized by the Iranian government. Law enforcement seized domains of four websites involved in "psychological operations targeting adversaries" of Iran’s regime, which included violent postings, threats, and calls for the "killing of journalists, regime dissidents, and Israeli persons." This followed Iran’s semi-official news agency Tasnim listing major U.S. tech giants as possible targets for retaliatory cyberattacks.
A grim report confirmed the execution of Saleh Mohammadi, a 19-year-old member of Iran’s national wrestling team, along with Mehdi Ghasemi and Saeed Davoudi, on charges of "waging war against God" for their alleged involvement in protests. Human rights organizations reported that the men denied allegations but confessed under severe torture. Adding to information control, commercial satellite companies like Planet Labs have restricted access to imagery showing the Middle East, citing "genuine concerns of use of Planet data over Iran… by adversarial actors."
The Pentagon is reportedly asking Congress for an additional $200 billion for the war, a figure Defense Secretary Pete Hegseth indicated "could move," adding, "it takes money to kill bad guys." Iran’s Foreign Minister Abbas Araghchi, sharing the report, said Americans could thank Israeli leader Benjamin Netanyahu and "his lackeys in [the U.S.] Congress" for the "trillion-dollar ‘Israel First tax’" hitting the U.S. economy, calling the $200 billion "the tip of the iceberg."
As the conflict intensifies, the world watches with bated breath, grappling with the immediate human cost, the severe economic repercussions, and the uncertain trajectory of a war with no clear end in sight.
