NEW DELHI / DOHA – The escalating conflict between the US, Israel, and Iran has taken a devastating turn into the heart of the world’s energy supply. In a series of overnight strikes that have sent shockwaves through global markets, two of the world’s most critical gas facilities Iran’s South Pars field and Qatar’s Ras Laffan hub have reportedly been targeted.
The news has caused immediate ripples in India, where the Sensex crashed by over 1,600 points in opening trade this morning. Investors are panicking as the “energy war” moves from shipping lanes to the actual production sites that provide nearly 20% of the world’s liquefied natural gas (LNG).
The Strikes: A Direct Hit on Supply
According to India Today, Israeli forces targeted the South Pars natural gas field the world’s largest which supplies nearly 80% of Iran’s domestic gas. Thick plumes of smoke were seen rising from the facility near Asaluyeh.
In a swift and “unfair” retaliation, according to US President Donald Trump, Iran launched ballistic missiles at Qatar’s Ras Laffan Industrial City. This site is the world’s largest LNG export terminal and a key supplier for India. Qatar has since declared Iranian military officials persona non grata, ordering them to leave the country within 24 hours.
Impact on India: Rupee and Stocks Crash
The domestic fallout was instantaneous. As reported by The Times of India, the Indian Rupee crashed to a record low of 92.63 against the US Dollar.
The “double whammy” of the US Federal Reserve keeping interest rates high and the sudden threat to Qatar’s gas exports has left Indian markets in a sea of red. Aviation and paint industries, which depend heavily on fuel prices, are among the worst hit.
The “Black Market” Crackdown
On the ground in India, the gas shortage has turned into a law-and-order issue. The Sunday Guardian reports that Delhi Police have arrested six people and seized 269 LPG cylinders in a massive raid against illegal hoarding.
In a desperate attempt to maintain order, several state governments, including Karnataka, have petitioned the Centre for emergency allocations. CM Siddaramaiah has officially requested Union Minister Hardeep Singh Puri to prioritize commercial LPG for hotels and small businesses to prevent a total shutdown of the hospitality sector.
A Slim Hope?
The only silver lining today is the continued bravery of the Indian Navy. Despite the strikes, the Navy confirmed that 22 Indian vessels are currently being monitored for safe passage. Two tankers, the Shivalik and Nanda Devi, successfully docked in Gujarat this morning with 90,000 metric tonnes of LPG, providing a small “oxygen mask” to the parched domestic supply.
