Iran-Israel Begin Attacking Each Other's Economic Infrastructure

TEHRAN, SUNDAY — Iran and Israel have begun to focus on attacking each other's economic infrastructure. Oil refineries, depots and ports are the targets.

Iranian missiles have reportedly targeted several energy infrastructures in the cities of Haifa and Tamra, Israel. A report from Israeli television station Channel 13 stated that Iranian missiles aimed at strategic energy infrastructure in both cities. Analysts suggest that this is a response from Iran due to the Israeli military targeting their energy infrastructure.

The Shahran depot near the Iranian capital, Tehran, was ablaze on Sunday (15/6/2025). The depot is the main backbone of energy supply for approximately nine million residents of Tehran and the surrounding cities.

The depot was one of the targets of Israel's attack on Iran early Sunday morning. Israel also attacked the Iranian Ministry of Defense office in Tehran.

Aljazeera reported that the Shahran depot serves as a storage facility for several million barrels of Iran's oil reserves and other refined products, particularly for the industry. Its location not far from Tehran makes the depot very important for the security of supply in the capital, especially in critical situations like the current one.

The Iranian news agency Tasnim also reported that Iran has decided to halt part of its energy production at the South Pars Field. This largest gas field in Iran is located in Bushehr Province. The field has also been attacked by Israel.

The open conflict between Iran and Israel has raised concerns about the global economy. Oil prices surged by up to nine percent in trading on Friday (13/6/2025) and are likely to continue skyrocketing.

The potential for this shock has resurfaced after the Iranian military stated that the government is considering closing the Strait of Hormuz. The strait is the main route for oil shipments in and out of the Persian Gulf. "Saudi Arabia, Kuwait, Iraq, and Iran are completely locked into a small route for exports," said Rabobank in its notes.

Iran is currently producing approximately 3.3 million barrels of oil and other products from its fields per day. Up to 2.2 million barrels of Iran's oil and gas products are exported daily.

Iran's production contributes nearly 20 percent of the approximately 19 million barrels of oil, condensate, and fuel shipped to international markets through the Strait of Hormuz. This figure is equivalent to 20 percent of total global consumption.

U.S. Energy Secretary Chris Wright stated that the government continues to monitor the situation in the Middle East and its impact on global energy supplies. The ongoing correction in global crude oil prices will increase fuel prices in the U.S. by 20 cents per gallon in the coming days.

This situation will impact the image of the Donald Trump administration. During the campaign, Trump consistently proclaimed that he would be able to lower energy costs in the United States.

The impact of the Israeli attack on Iran has been felt in Egypt. The government was forced to halt the operations of fertilizer plants due to a decrease in natural gas supply from Israel.

The Egyptian Ministry of Petroleum has stated that it is compelled to limit gas supplies to the public. Priority allocation is given to strategic industries. In fact, power plants have also had their gas supplies restricted. Power plants are requested to use only oil.

Australia, a country far from areas of open conflict, is also reported to be preparing to face economic pressures due to the potential rise in global oil prices. Citing the Australian news agency ABC News, fuel prices in Australia could increase by up to 12 cents per liter. In fact, fuel prices in this country have already risen at the beginning of June.

Shane Oliver, an economist at the business consulting firm AMP, stated that the most concerning scenario would be if the Iranian government were to completely close the oil trade route in the Strait of Hormuz. Such a closure is expected to drive oil prices higher, ranging between 90-100 US dollars per barrel.

According to calculations by the International Monetary Fund, a 10 percent increase in oil prices will raise the inflation rate by 0.4 percent. This situation will add pressure to the country's economy and the purchasing power of the public.

Ukrainian President Volodymyr Zelenskyy warned that the open conflict between Israel and Iran, which has led to a sharp increase in global oil prices, would benefit Russia. "The attacks have caused a sharp rise in oil prices, which negatively impacts us," said Zelenskyy. "Russia becomes stronger due to greater revenue from oil exports."

Zelenskyy stated that the situation in the Middle East is advantageous for Russia because the economic sanctions against the Kremlin have not been effective enough to stop the country from conducting transactions with other nations. Ukraine's allies in the West, according to Zelenskyy, have also yet to impose price restrictions on oil products originating from Russia.

Despite several Western countries imposing sanctions on the Russian economy, the oil-exporting nation is still able to send its products to the international market with relative ease. With prices below market rates, several countries have chosen to purchase Russian oil.

The benefits that Russia gains are not solely from its oil sales. Zelenskyy mentioned that the potential redirection of Western military aid and equipment to Israel could occur, ultimately leaving very little for Ukraine.

"We want assistance to Ukraine not to diminish because of this," he said. "Last time, this was a factor that slowed down aid to Ukraine."

He said he would contact US President Donald Trump to discuss the matter. (AP/AFP/Reuters)