The Middle East's role in global energy markets has come into sharp focus after a strike on Iran's South Pars gas field. The region accounts for 30% of global oil production and 17% of natural gas output, with much of this concentrated on the Arabian tectonic plate. This plate hosts 55% of the world's proven oil reserves and 40% of its natural gas, including a disproportionate number of giant and supergiant fields.
The South Pars/North Dome field, the world's largest gas field, is shared between Iran and Qatar. Discovered in Qatari waters in 1971, its northern extent was confirmed by Iran two decades later. Geologically a single structure, it is divided by a maritime boundary. The field lies in the Khuff formation, porous rocks formed 200–300 million years ago, nearly two miles beneath the seabed.
Qatar's North Dome, operated by QatarEnergy, produces about 18.5 billion cubic feet per day, making Qatar the world's largest LNG exporter and supplying around one-fifth of global LNG. Oil and gas account for roughly 80% of Qatar's government revenues. On the Iranian side, South Pars, operated by Petropars, produces an estimated 2 billion cubic feet daily. Iran's gas output has increased fivefold over 25 years, driven largely by drilling at South Pars.
The field's strategic importance is heightened by its location near the Strait of Hormuz, a key trade route for oil tankers and LNG cargoes. Disruption to this route could affect global energy supplies, as seen during the 2022 Ukraine conflict. Key importers of Iranian gas via pipeline include Turkey and Iraq.
