Middle East Oil War: What’s Burning, What It Means, and Why Your Gas Bill Might Spike

Oil Facilities or Oil Refineries Hit Inside Iran

Israel has launched airstrikes on several major energy sites inside Iran.

Fuel storage depots and oil tanks in the Tehran area were struck, causing massive fires. Witnesses described rivers of burning oil flowing through the streets, with thick black smoke blanketing parts of the city. Residents were told to stay inside and keep windows shut because of toxic air.

The fires caused short-term fuel shortages in central Iran and left serious environmental damage behind.

A refinery near Tehran was also hit directly. The explosions forced it to shut down, which cut into Iran’s ability to produce gasoline for its own population.

Further south in Bushehr Province, Israel struck a processing facility at the South Pars Gas Field — the largest natural gas field in the world, which Iran shares with Qatar. A second major gas refinery in the same province, the Fajr-e Jam facility, was also hit and forced to close.

One critical facility has not been touched yet: Kharg Island, a terminal in the Persian Gulf that handles around 90% of Iran’s oil exports. Analysts say that if this site were destroyed, global oil prices could shoot past $150 a barrel almost immediately.

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Iran Strikes Back

Iran didn’t sit still. It hit back at energy targets across the region.

Drone strikes hit the Ras Tanura refinery in Saudi Arabia — one of the biggest oil export terminals on the planet, owned by Saudi Aramco. The refinery caught fire and had to shut down temporarily.

LNG (liquefied natural gas) facilities in Qatar were also struck, briefly halting production and sending shockwaves through global gas markets.

Iran then moved to choke off the Strait of Hormuz — the narrow waterway through which roughly one-fifth of the world’s oil travels every day. Naval mines were deployed, and several ships were hit by missiles. Shipping through the strait ground to a halt.

A drone strike, suspected to involve Iran, also hit fuel storage tanks at the port of Salalah in Oman, disrupting port operations.

Israel wasn’t spared either. Iran’s strikes caused damage to a power station near Haifa, forcing Israel’s largest oil refinery to shut down.

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Who Is Affected?

The countries directly attacked include Iran, Saudi Arabia, Qatar, Oman, and Israel.

But the economic pain is spreading much further. The United States, China, India, Japan, South Korea, and most European nations all depend heavily on Middle East oil and gas. Every one of them is feeling the squeeze.

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Global oil market situation

Current key factors:

1. Strait of Hormuz disruption

   • ~20% of global oil supply passes through it.

2. Energy infrastructure attacks

   • Refineries and gas facilities damaged across the Gulf.

3. Energy companies evacuating staff

   • Companies like Exxon, Chevron and others halting operations.

4. IEA emergency oil release

   • Large strategic oil reserves released to stabilize markets.

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What’s Happening to Oil Prices?

The situation is serious enough that major energy companies — including ExxonMobil and Chevron — have begun pulling staff out of the region. The International Energy Agency has unlocked emergency oil reserves to try to keep markets from completely spiraling.

Even so, oil prices have already climbed to between $90 and $93 a barrel. Here’s what analysts think happens next:

Iran itself has warned that if the Strait of Hormuz is shut down completely, prices could hit $200 a barrel.

My best estimate for Monday, March 16: Brent crude lands somewhere between $100 and $115 per barrel, with US oil (WTI) close behind at $95–$110. The combination of disrupted shipping, shuttered refineries, and sky-high geopolitical risk makes a triple-digit price the most likely outcome in the short term.

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