Iran
(Image Source: DoW photo by U.S. Air Force Staff Sgt. Madelyn Keech)

U.S.-Iran War Update: Energy War Spreads Across Gulf, Raising Fears of a Conflict With No Clear End

By the end of the week, the U.S.-Iran war had taken another dangerous turn. What looked like a brutal but still somewhat defined campaign against missile launchers, naval assets, and military infrastructure has now widened into something more volatile: a conflict that is hitting gas fields, LNG terminals, refineries, shipping lanes, and the political nerves of governments far beyond the battlefield.

Since launching strikes against Iran on February 28, the war has moved decisively beyond the question of whether Washington and Jerusalem could keep degrading Iran’s military capacity from the air.

The more pressing concern now is whether they can do so without triggering a broader regional and global energy shock, pulling in more actors, and deepening the sense that this conflict is becoming harder to contain rather than easier to end.

That is a notable shift from the picture The Debrief described in last week’s update, when the Strait of Hormuz crisis was already central but had not yet fully spread into a direct war on energy infrastructure across the Gulf.

The decisive turn came in the middle of the week, when Israel conducted strikes on Iran’s South Pars gas field, and nearby Asaluyeh processing hub pushed the conflict into the core of Iran’s domestic energy system. Iran answered by striking regional energy assets tied to Gulf states and the broader global market.

At the same time, U.S. officials publicly insisted their objectives remain unchanged, even as reports emerged of possible additional troop deployments, discussions about more coercive options around Iran’s Kharg Island, and a Pentagon request for more than $200 billion in additional war funding.

Taken together, those developments suggest a war that is broadening in both consequence and ambition.

By day 21, it has become clear that the conflict is no longer only about what happens inside Iran or across the Middle East. It is now about whether a regional war can destabilize the arteries of global trade and energy.

A joint statement issued Thursday, March 19, by Britain, France, Germany, Italy, the Netherlands, Japan, and Canada underscored the war’s new reality, showing that its effects now extend far beyond the battlefield.

“We condemn in the strongest terms recent attacks by Iran on unarmed commercial vessels in the Gulf, attacks on civilian infrastructure, including oil and gas installations, and the de facto closure of the Strait of Hormuz by Iranian forces,” the statement reads. “The effects of Iran’s actions will be felt by people in all parts of the world, especially the most vulnerable.”  

Key Events This Week: 

The human cost of the war is beginning to accumulate. On Monday, March 16, the World Health Organization said six hospitals in Iran had been evacuated, 18 attacks on healthcare facilities had been verified, and eight medics had been killed. Iran’s ambassador in Geneva said more than 1,300 people had been killed and over 7,000 wounded since the war began on February 28, although those figures could not be independently verified.

Iranian retaliation has also produced a growing toll across the Middle East.

In Israel, 15 civilians had been killed as of Thursday, along with two Israeli soldiers. An Iranian missile strike on the West Bank on Wednesday killed three Palestinian women and wounded 13 others.

In the Gulf states, Iranian attacks have reportedly killed eight people in the United Arab Emirates, six in Kuwait, two in Saudi Arabia, and two in Bahrain, though publicly available reporting has been far more consistent on fatalities than on comprehensive injury totals in those countries.

Meanwhile, the United States has reported 13 service members have been killed and about 200 wounded since the start of hostilities, with most of the injured suffering minor wounds and 180 already returned to duty.

This week also highlighted one of the war’s most remarkable features. Israel still appears able to find and kill senior Iranian officials even after Iran shifted to wartime footing. In a conflict like this, top leaders would normally be expected to be dispersed, heavily guarded, and communicating under far tighter security.

On Wednesday, March 18, Ali Larijani, Iran’s security chief, former nuclear negotiator, and one of the Islamic Republic’s most influential behind-the-scenes powerbrokers, was killed in an Israeli airstrike.

On Friday, Iranian state TV also said Ali Mohammad Naini, the spokesperson and deputy head of public relations for the Islamic Revolutionary Guard Corps, had been killed as well.

The deaths came on top of a much broader decapitation campaign that has already killed Supreme Leader Ayatollah Ali Khamenei and several senior intelligence, security, and defense officials. 

Taken together, the pattern points to something larger than a campaign to destroy missile launchers, drones, and military facilities. Israel appears to be trying to systematically strip away the regime’s command layer and put relentless pressure on the political and coercive machinery that keeps the Islamic Republic functioning.

The tactical significance of Israel’s ability to target senior Iranian leadership is difficult to overstate. Striking senior officials in the opening phase of a war is notable. However, continuing to find and kill them days and weeks later, after Iran has had time to disperse leaders, tighten security, and adjust its communications, suggests a level of intelligence penetration that remains extraordinary.

Strategically, this does not necessarily mean the Iranian regime is on the verge of collapse. Tehran still retains institutions, armed forces, and surviving power centers. However, the cumulative effect of these killings could leave Iran’s leadership more brittle, more paranoid, and more prone to dangerous miscalculation as the war grinds on.

Also on Wednesday, Israel conducted airstrikes on South Pars, marking the week’s clearest military and economic inflection point.

South Pars is not just another industrial target. It is a giant offshore field shared by Iran and Qatar and holds roughly 1,800 trillion cubic feet of gas. It accounts for around 70% to 75% of Iran’s gas production, most of it used domestically for power generation, heating, cooking, and petrochemicals.

In other words, this was a strike not simply on revenue, but on the civilian-industrial foundation of the Iranian state. Tehran initially responded by diverting gas for domestic use and halting exports to Iraq, highlighting how fast the economic shock of this war can move across borders.

Iran also lashed out militarily, conducting missile and drone strikes on Qatar’s Ras Laffan complex, knocking out about 17% of the country’s LNG export capacity for an estimated three to five years, according to QatarEnergy’s chief.

Other attacks affected facilities in Saudi Arabia, Kuwait, and the UAE. Brent crude surged, natural gas prices jumped sharply, and even by Friday, oil remained near $110 a barrel despite attempts by the United States and its partners to calm markets and prepare new supplies.

Iran’s response underscored the logic of its war strategy. If it cannot dominate the air, it can still impose high costs by targeting the wider energy system and raising the price of war not just for Israel and the United States, but for every country tied to Gulf energy and trade.

The attacks also exposed increasingly visible tension between Washington and Jerusalem. President Donald Trump claimed the U.S. was unaware of Israel’s plans to attack South Pars and said he had told Israeli Prime Minister Benjamin Netanyahu not to repeat the strike on Iranian gas infrastructure.

“The United States knew nothing about this particular attack, and the country of Qatar was in no way, shape, or form, involved with it, nor did it have any idea that it was going to happen,”  President Trump wrote on Truth Social. “Unfortunately, Iran did not know this, or any of the pertinent facts pertaining to the South Pars attack, and unjustifiably and unfairly attacked a portion of Qatar’s LNG Gas facility.”

In a Thursday press conference, Netanyahu defended the war and sketched a postwar vision in which oil and gas would flow through Israel to the Mediterranean, bypassing vulnerable maritime chokepoints. He also suggested that overthrowing the Iranian system might ultimately require a ground component.

The implications of the differing public statements by Jerusalem and Washington are difficult to ignore. The United States still publicly frames the war around missiles, naval power, and nuclear prevention, while Israel increasingly talks in terms of regime pressure and regional redesign.

In a Pentagon press conference on Thursday, Secretary of War Pete Hegseth tried to project continuity. He said U.S. objectives remain what they were on day one: destroy Iran’s missile launchers, degrade its defense industrial base and navy, and prevent it from obtaining a nuclear weapon.

According to Secretary Hegseth, the U.S. has now struck 7,000 targets inside Iran and has damaged or sunk over 120 Iranian naval vessels. “To borrow a page from Admiral Ernest King in World War II, we’ve decided to share the ocean with Iran,” Secretary Hegseth said. “We’ve given them the bottom half.”

Even so, the war does not appear to be moving toward a clean conclusion. Iran still seems to retain some missile capability, and reports suggest that a U.S. F-35 may have been struck by Iranian air defenses, forcing the aircraft to land in a neighboring country.

After meeting with lawmakers on Thursday, the Pentagon is also reportedly pushing for more than $200 billion in additional funding for the Iran war. This suggests Washington is preparing for a longer, more expensive conflict than the administration has publicly admitted.

The maritime front tells a similar story. The International Maritime Organization said around 20,000 seafarers on nearly 2,000 ships west of the Strait of Hormuz have been affected, with 17 vessel incidents and at least seven seafarer deaths reported since the war began.

The IMO’s governing council agreed to work toward a safe corridor for evacuating merchant ships from high-risk waters, while European governments, Japan, and Canada said they were ready to contribute to efforts to ensure safe passage through the Strait and stabilize energy markets.

Yet, readiness is not the same thing as intervention. Germany and other allies remain wary of joining active military operations while hostilities continue, which means Washington still faces the core problem identified in last week’s update: Hormuz is central to the war, but reopening it safely cannot be accomplished with simple airstrikes alone.

As of Friday, March 20, the immediate picture remains one of escalation without resolution. Reuters reported that infrastructure at Israel’s Haifa refinery complex was damaged in an Iranian strike, though most production remained operational.

According to Axios, the Trump administration is weighing plans to occupy or blockade Iran’s Kharg Island to pressure Tehran into reopening the Strait of Hormuz. Such a move would mark another major escalation, and one defense analysts have suggested could be both risky and costly.

More than just a tactical gamble, a raid on Kharg would likely intensify fears that the United States is moving closer to a direct and potentially prolonged war over maritime control in the Gulf.

That risk also speaks to a larger strategic problem. In a New York Times op-ed, retired Rear Admiral Mark Montgomery argued that any U.S. claim of victory would ring hollow if the conflict ended with Iran still able to control the Strait of Hormuz.

Adm. Montgomery’s assertion gets to the heart of the war’s new reality. The central question is no longer just how much Iranian military infrastructure the United States and Israel can destroy. It is whether they can stop Tehran from continuing to impose strategic costs anyway, even after absorbing heavy damage.

This week showed just how much the conflict has changed. It is no longer defined mainly by the number of launchers, boats, or command posts U.S. and Israeli forces can destroy. It is increasingly defined by whether they can stop Iran from imposing costs through shipping disruption, energy shocks, regional strikes, and political pressure on allied governments and on Washington itself.

So far, the conflict appears to be widening faster than any credible off-ramp is emerging. That is why, as of March 20, the war looks even harder to end than it did a week ago.

Tim McMillan is a retired law enforcement executive, investigative reporter and co-founder of The Debrief. His writing typically focuses on defense, national security, the Intelligence Community and topics related to psychology. You can follow Tim on Twitter: @LtTimMcMillan.  Tim can be reached by email: tim@thedebrief.org or through encrypted email: LtTimMcMillan@protonmail.com