Iran conflict latest: Hegseth says U.S. to unleash "largest strike package yet"

Investing.com - U.S. Defense Secretary Pete Hegseth said Washington will hit Iran with its "largest strike package yet" on Thursday, adding that Iran’s missile strikes have fallen by 90% since the start of joint U.S.-Israeli assault on the country roughly three weeks ago.

Speaking at a press conference, Hegseth said Iran’s 11 submarines in service before the war have been eliminated, while Iran’s military ports are "crippled."

The comments come as escalating attacks on critical energy infrastructure across the Middle East are driving a sharp surge in oil and gas prices, putting markets worried about a widening supply shock on edge.

Brent Oil Futures had jumped 5.5% to $113.32 per barrel by 08:31 ET (12:31 GMT), although the global crude benchmark had pulled back from around $119 a barrel. At the same time, Dutch TTF Natural Gas Futures, the European benchmark, surged 15.2% to 62.99 euros per megawatt-hour, also moderating marginally from an earlier spike.

The latest escalation came after Iranian ballistic missiles struck Qatar’s Ras Laffan industrial area early Thursday, targeting one of the world’s most important liquefied natural gas hubs. The attack marks the second wave in less than a day and caused significant damage, though no casualties were reported.

Ras Laffan is central to global LNG supply, accounting for a substantial share of exports to both Europe and Asia. Damage to the facility threatens to trigger a full-scale energy crisis, particularly as Europe enters a period of tight inventories following a cold winter and continues to rely on Qatari LNG to replace Russian pipeline gas. Major Asian economies, including Japan, South Korea, India and China, are also heavily dependent on long-term Qatari supply.

State-run QatarEnergy said the attacks caused extensive damage to the Pearl GTL plant, the world’s largest gas-to-liquids facility, while additional missile strikes sparked fires and further destruction across multiple LNG installations. The scale of the disruption has already pushed buyers into a scramble for uncontracted cargoes, intensifying competition and driving prices higher.

Unlike oil markets, where strategic reserves can help buffer supply shocks, global LNG markets lack a comparable safety net, leaving them particularly vulnerable to sudden disruptions. This structural constraint is amplifying price moves as traders reassess supply risks.

Similarly, Saudi Arabia reported drone and missile attacks targeting key refining infrastructure, including facilities in Yanbu and Riyadh, while Kuwait confirmed a drone strike at its Mina Abdullah refinery, which triggered a fire that was later contained. Elsewhere, a drone strike hit an operational unit at Kuwait’s Mina Abdullah refinery, sparking a fire, Kuwait National Petroleum Company said.

Tehran’s attacks were largely a retaliation against Israeli strikes on facilities linked to Iran’s South Pars gas field earlier this week. Iran has said operations at its largest gas complex continue.

Meanwhile, diplomatic pressure is also mounting. Foreign ministers from 12 countries across the Middle East condemned the attacks on energy infrastructure and called on Iran to halt further strikes, warning of severe consequences for regional stability and global energy markets.

President Donald Trump said late Wednesday that Israel would refrain from further attacks on South Pars, attempting to ease tensions after a strike earlier in the week triggered retaliatory action from Tehran against Qatar’s key LNG infrastructure.

In a post on Truth Social, Trump warned that “NO MORE ATTACKS WILL BE MADE BY ISRAEL” on the critical gas field unless Iran escalates further, signaling a potential effort to contain the conflict’s impact on global energy markets.

Still, the fresh bombardments are "marking a potentially dangerous new chapter in the conflict," Helima Croft, Head of Global Commodity Strategy at RBC, said in a note.

(Senad Karaahmetovic contributed reporting.)