The recent military operations dubbed "Epic Fury" by the USA and the corresponding retaliatory attacks from Iran have had profound consequences for the energy sector. Key energy installations have come under fire, leading to significant disruptions. On Thursday, oil prices reached highs of $119 per barrel, while gas prices in Europe surged over 30% to €74 per megawatt-hour, reflecting the heightened tensions and uncertainty in the market.

Notably, the escalation of attacks has directly affected pivotal energy infrastructure, including the world's largest gas field, South Pars in Iran, and the Ras Laffan liquefied natural gas (LNG) production facility in Qatar. Additional targets have included refineries, ports, and shipping routes, with various forms of assault such as bombs, rockets, and drones contributing to the fragile situation. Analysts, including Per Magnus Nysveen from Rystad Energy, underscored the catastrophic implications for the oil market, particularly highlighting the threat posed to the Strait of Hormuz, a vital passage for global oil and gas shipments.

Looking ahead, the current crisis is likely to result in a permanent reduction in production volumes, potentially affecting supply chains for years to come. Nysveen noted that once the crisis subsides, oil prices will likely stabilize at a higher level to allow global inventories to rebuild. The prospect of a loss of 700 million barrels due to sustained disruptions indicates possible long-term consequences for global energy markets, suggesting that buyers will have to adjust to a new reality of higher prices and dwindling supply.