Israel has escalated its ongoing conflict with Iran, striking the world’s largest gas field and other energy infrastructure as part of a two-day assault that had otherwise largely targeted sites and personnel tied to the Islamic Republic’s armed forces and nuclear program.

Iranian semi-official media outlets, including Tasnim News Agency and Fars News Agency, reported on Saturday that an Israeli drone struck Iran’s South Pars Gas Field, which is shared with Qatar, where it is known as the North Dome Gas Field. The attack was said to have targeted Phase 14 refineries of the Iranian section, with at least one unit reportedly on fire, leading to a suspension in operations.

Footage circulating on news channels and social media appeared to show flames and smoke rising from a section of the complex, which is located in the Kangan area of Iran’s south coast Bushehr province.

The Israel Defense Forces (IDF) has yet to publicly comment on the attack.

Fox News cited an Israeli official as saying Saturday that Israel conducted a single strike on Iranian gas infrastructure near the southern city of Bander Abbas, serving as a warning against Iranian strikes against Israeli population centers.

The accuracy of the comments has been confirmed to Newsweek.

South, Pars, Iran, gas

Natural gas refineries are seen at the South Pars Gas Field on the northern coast of the Persian Gulf, in Asaluyeh, Iran, on March 16, 2019.
Natural gas refineries are seen at the South Pars Gas Field on the northern coast of the Persian Gulf, in Asaluyeh, Iran, on March 16, 2019.
Vahid Salemi/AP
A ‘New Phase’

The Israeli attack marks the first of its kind against Iranian energy infrastructure, raising concerns about the potential broader impact of the escalating conflict on global energy security and prices.

Gregory Brew, senior analyst specializing on Iran and energy at the Eurasia Group, referred to the strike as “a warning shot from Israel, threatening more damage against Iran’s energy infrastructure in the event Iran escalates its retaliatory operations.”

“The target of the Israeli attack was one of four onshore gas processing facilities and was linked to phase 14 of the enormous South Pars field—a portion of the fields output will be affected, but most will not,” Brew told Newsweek.

“South Pars supplies a significant portion of Iran’s domestic gas market,” he added. “Israel—which is concentrating on military targets and Iran’s nuclear program—is clearly signaling that it is prepared to escalate against Iran’s energy infrastructure, if necessary.”

Nader Itayim, a Dubai-based editor specializing in Middle East energy politics at Argus Media, also described the Israeli strike as “a warning shot to Iran,” one meant to indicate that Israel could take the conflict “to that next level.”

He argued that the reported targets, said to include the Phase 14 gas treatment facility and Fajr Jam gas treatment plant, indicated that “Israel is starting with processing facilities rather than primary production facilities.”

Still, he called the attack “definitely significant” as it “moves this conflict into a new phase” beyond the two exchanges of strikes between Iran and Isael last year.

“Energy infrastructure was, by and large, supposed to be kept out of the line of fire,” Itayim said. “That was essentially the kind of unsaid terms of engagement last year when we saw the direct against one another last year.”

While he felt the immediate impact would be limited and production likely restored in fairly short order, he said the biggest concern in the eyes of analysts was the threat of “spillover,” particularly if the Iran-Israel conflict escalates to the point where the Islamic Republic or its allies decided to conduct attacks against third nations aligned with the United States, which is currently supporting Israel’s defense against Iranian retaliatory attacks.

Iranian analysts have previously told Newsweek that Tehran could respond to Israeli attacks on the nation’s energy facilities by targeting Israeli oil and gas infrastructure and would expand to striking energy sites in other nations, such as Saudi Arabia and the United Arab Emirates, if the U.S. got involved directly.

Bahrain, Qatar, Saudi Arabia, the UAE and a number of other nations in the region have condemned Israel’s attacks on Iran.

Iranian President Masoud Pezeshkian spoke Saturday with Saudi Crown Prince Mohammed bin Salman, telling him he has “sought to strengthen peace, stability, and security in the region, but the Zionist regime has disrupted and sabotaged every area where we wanted to achieve something,” according to a readout from his office.

Conflict Intensifies

Israeli officials continued to announce operations Saturday in line with what’s been dubbed “Operation Rising Lion,” a sweeping and unprecedented series of attacks launched late Thursday targeting Iran’s nuclear facilities, military infrastructure and senior personnel, including commanders and nuclear scientists.

An Israeli official told Newsweek shortly after the operations began that the strikes were conducted in line with intelligence concluding that Iran had obtained enough material to produce up to 15 nuclear bombs. Iranian officials have always denied seeking nuclear weapons.

Vowing severe retaliation, Iran commenced a retaliatory “Operation True Promise III” on Friday and fired several waves of missiles and drones against Israel. Iran claims to have severely damaged a number of Israeli military bases, while the IDF has said the majority of incoming attacks have been intercepted.

Iranian ambassador to the United Nations Saeed Amir Iravani said Friday that the Israeli strikes had thus far killed 78 people, the majority of them civilians, and injured more than 320. Among the dead are Iranian Armed Forces chief of staff Major General Mohammed Bagheri, Islamic Revolutionary Guard Corps (IRGC) chief Major General Hossein Salami and IRGC Aerospace Forces commander Brigadier General Amir Ali Hajizadeh, as well as several nuclear scientists.

Israel’s Magen David Adom emergency service reported Saturday that the toll of Iranian attacks on Israel included three dead and around 200 wounded.

Diplomacy Breaks Down

Israel’s sudden large-scale campaign has prompted Iran to cancel a sixth round of nuclear talks set to be held Sunday in Oman, as announced by Iranian Foreign Minister Abbas Araghchi on Friday. The Omani Foreign Ministry confirmed Saturday that the negotiations would not be held.

The development came despite President Donald Trump urging Iran to double down on efforts to secure a nuclear agreement or face further action from Israel. Trump had previously urged Israeli Prime Minister Benjamin Netanyahu not to pursue military action against Iran while the talks were ongoing but issued statements following the strikes indicating that he supported the operation after a 60-day deadline he earlier issued had passed without a deal.

Newsweek has reached out to the U.S. State Department for comment.

This is a breaking news story. Updates to follow.