Iran's oil infrastructure emerged unscathed from Israeli air and missile strikes in the early hours of 13 June, according to Iran's state news agency Irna and Argus sources. But the attacks have raised the prospect of a broader escalation in the world's largest oil-producing region.
Israel said the strikes targeted military facilities and infrastructure linked to Iran's nuclear programme. It described the operation as an act of self-defence, claiming Iran is "closer than ever" to acquiring a nuclear weapon. The US denied involvement and urged Tehran not to retaliate against US personnel in the region.
Iran informed the International Atomic Energy Agency (IAEA) that its Bushehr nuclear power plant was not targeted and that no increase in radiation levels had been observed at its Natanz site, IAEA director general Rafael Grossi said today.
Oil operations remain unaffected. Activities at Iranian facilities are continuing "without interruption and in a stable manner," Irna reported, citing state-owned refiner NIORDC.
The operator of Iran's 700,000 b/d Abadan refinery said the plant is running at full capacity with no disruption, according to the state news agency Shana. The 110,000 b/d Tabriz refinery — located near one of the reported strike zones — was not hit and "operations resumed as normal," an official at the plant told Argus. No other Iranian oil or gas facilities have been targeted so far, Argus understands.
Crude futures surged in early Asian trading on news of the strikes, rising by as much as 13pc before paring gains. As of 09:00 GMT, the front-month August Ice Brent contract was trading at $74.30/bl, down from an earlier high of $78.50/bl. The absence of physical supply disruption helped ease immediate concerns, but the risk of a wider conflict remains high.
In response to the strikes, Iran launched around 100 drones toward Israeli territory. "Israel is working to intercept [the drones]," Israeli military spokesperson Effie Defrin said. Israeli media later reported that all drones were intercepted.
The fallout from the strikes has affected regional gas operations. Greek independent Energean suspended production from its Karish gas field offshore Israel following a government order issued after the Israeli attacks.
Security concerns in key shipping lanes were already rising ahead of the strikes. On 12 June, the Joint Maritime Information Centre (JMIC) warned that the "threat will be elevated until further notice for vessels operating in or transiting the Arabian Gulf, strait of Hormuz, and Northern Arabian Sea". Any disruption to the strait of Hormuz — a chokepoint for nearly a fifth of global oil flows — could have immediate and severe consequences for global crude supply and pricing.
The Yemen-based Houthi movement, part of Iran's regional proxy network known as the ‘Axis of Resistance', condemned the Israeli strikes and affirmed "Iran's right to carry out a deterrent response." It declared support for Iran's "legitimate right to respond to the aggression." So far, however, neither the Houthis nor other Iran-aligned groups — including Lebanon's Hezbollah and Shia militias in Iraq — have taken retaliatory action.
Israel has significantly weakened the Axis of Resistance since the October 2023 Hamas-led attack, eliminating most of Hamas' leadership and key Hezbollah figures.
Israel and Iran also exchanged missile and drone strikes in 2024.
