Israel’s lethal attack on Iran creates panic in China, Xi falls into his own game while trapping Modi, Chinese economy to… India to…
New Delhi: The world’s largest gas field, the South Pars, has been completely damaged in Israeli attack. This has led to the complete halt in the production of gas. It is important to note that this is the first time Israel has targeted Iran’s oil and gas infrastructure, clearly indicating that Israel is now attempting to harm Iran’s economy. As a result, global oil and gas prices may see a significant surge. If the conflict continues for long, crude oil prices could rise to as much as USD 120 per barrel, according to JPMorgan. The South Pars gas field produces around 12 million cubic meters of gas per day.
The South Pars gas field is located beneath the sea in Iran’s southern Bushehr province. It stretches into the Persian Gulf, where the maritime borders of Iran and Qatar meet. The Qatari portion is known as the North Field. This region is a major supplier of LNG to the world.
Nearly half of Iran’s total gas reserves are located here, and 66 percent of Iran’s gas production comes from this field. After the US and Russia, Iran is the third-largest gas producer in the world. It produces about 275 billion cubic meters of gas annually, accounting for around 6.5 percent of global supply.
Iran’s Current Condition:
Due to international sanctions, most of the gas produced in Iran is being used within the country. Gas fields are the main source of income in Iran, it also uses this gas to heat homes, run factories, and sustain its economy. Qatar, on the other hand, exports 77 million tons of LNG annually from this same field.This attack not only poses a threat to Iran’s energy sector but also serves as a warning that more critical sites could be targeted in the future.
Huge Impact of Inflation
Iran is likely to face a major crisis in the coming days. Notably, the people of the country is already facing high inflation. Iran’s population is nearly 10 times that of Israel. In 2024, Iran’s GDP was $434 billion, while Israel’s economy stood at $540 billion. Iran’s biggest source of income is crude oil, but the United States and Western countries have already imposed various sanctions on Iran.
China will also be affected
Over 90 percent of Iran’s oil exports go to China. The trade relationship between Iran and China remained unaffected despite the sanctions imposed by the world. But now, the attacks on Iran’s oil facilities likely to change this situation. It may disrupt China’s oil supply, and if that happens, it could harm the Chinese economy as well.
In March, China imported 1.8 million barrels of crude oil daily from Iran. China, which has blocked the supply of rare earth magnets to India, may now end up falling into its own trap.
Iran’s economy is dominated by the Islamic Revolutionary Guard and Islamic organizations. They neither pay taxes nor maintain transparent records. Experts say Iran is not in a position to fight a prolonged war with Israel.
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