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Israel has struck some of Iran’s most vital oil and gas facilities, the first such attacks despite decades of rivalry between the Middle Eastern nations, raising fears of a widening conflict and threatening turmoil for the markets.

Late on Saturday, Iran’s Ministry of Petroleum said Israel struck a key fuel depot, while another oil refinery in the capital city of Tehran was also in flames, as emergency crews scrambled to douse the fires at separate sites.

Iran has also partially suspended production at the world’s biggest gasfield, the South Pars, which it shares with neighbour Qatar, after an Israeli strike caused a fire there on Saturday.

The latest round of exchange of projectiles began on Friday after Israel launched attacks on Iran’s military and nuclear sites and assassinated several top military officials and nuclear scientists. Tehran retaliated by firing ballistic missiles and drones at multiple cities in Israel amid global calls for de-escalation.

According to Iranian state media, Israeli attacks have killed at least 80 people, including 20 children, and wounded 800 others over the past two days. Israeli authorities said that 10 people had been killed in Iranian strikes, with over 180 injured.

Israel’s unprecedented and sudden attacks on Iran’s energy facilities are poised to disrupt the oil supplies from the Middle East, and could shake up global fuel prices, even as both countries threaten each other with even more intense attacks.

So, what are the key energy sites in Iran hit in Israeli attacks? And why do they matter?

Which major facilities were hit in Israeli attacks?

Iran holds the world’s second-largest proven natural gas reserves and the third-largest crude oil reserves, according to the United States government’s Energy Information Administration (EIA), and its energy infrastructure has long been a potential target for Israel.

Before the current spiral in their conflict, Israel had largely avoided targeting Iranian energy facilities, amid pressure from its allies, including the US, over the risks to global oil and gas prices from any such attack.

That has now changed.

On Friday, Israel’s Defence Minister Israel Katz warned that if Iran retaliated to its attacks, “Tehran will burn”.

Late on Saturday, major fires broke out at two opposing ends of the Iranian capital — the Shahran fuel and gas depot, northwest of central Tehran, and one of Iran’s biggest oil refineries in Shahr Rey, to the city’s south.

While Iran’s Student News Network subsequently denied that the Shahr Rey refinery had been struck by Israel, and claimed it was still operating, it conceded that a fuel tank outside the refinery had caught fire. It did not explain what sparked the fire.

But Iran’s Petroleum Ministry confirmed that Israel had struck the Shahran depot, where firefighters are still trying to bring flames under control.

The Israeli aerial attacks also targeted the South Pars field, offshore Iran’s southern Bushehr province. The world’s largest gasfield is the source of two-thirds of Iran’s gas production, which is consumed nationally. Iran shares the South Pars with its neighbour Qatar, where it is called the North Field.

The strikes triggered significant damage and fire at the Phase 14 natural gas processing facility and halted an offshore production platform that generates 12 million cubic metres per day, reported the semiofficial Tasnim news agency.

In a separate Israeli attack, fire reportedly broke out at the Fajr Jam gas plant, one of Iran’s largest processing facilities, also in the Bushehr province, which processes fuel from South Pars. The Iranian Petroleum Ministry confirmed that the facility was hit.

Why are these sites important?

The Shahran oil depot is one of Tehran’s largest fuel storage and distribution hubs. It has nearly 260 million litres of storage capacity across 11 tanks. It is a vital node in the capital’s urban fuel grid, distributing petrol, diesel, and aviation fuel to several terminals across northern Tehran.

The Tehran Refinery, located just south of Tehran, in the Shahr-e Rey district, operated by the state-owned Tehran Oil Refining Company, is one of the country’s oldest refineries, with a refining capacity of nearly 225,000 barrels per day. Experts warn that any disruption to this site — whatever the cause of the fire — could strain fuel logistics in Iran’s most populous and economically significant region.

Down south, the offshore South Pars gasfield in the Gulf contains an estimated 1,260 trillion cubic feet of recoverable gas, accounting for nearly 20 percent of known global reserves.

Meanwhile, the hit on the Fajr-e Jam Gas Refinery, in Bushehr province, threatens to disrupt Iran’s domestic electricity and fuel supplies, particularly for the southern and central provinces, which are already under huge stress. In Iran, blackouts cost the economy about $250m a day, according to the government’s estimates.

Uncertain global markets

Adding to the uncertainty in global markets, Iran has noted that it is considering closing the Strait of Hormuz amid the intensifying conflict with Israel – a move that would send oil prices soaring.

The Strait of Hormuz, which splits Iran on one side and Oman and the United Arab Emirates on the other, is the only marine entryway into the Gulf, with nearly 20 percent of global oil consumption flowing through it. The EIA describes it as the “world’s most important oil transit chokepoint”.

The Israeli attacks on Friday, which spared Iran’s oil and gas facilities on the first day of the fighting, had already pushed oil prices up 9 percent, before they calmed just a bit. Analysts expect prices to rise sharply when oil markets open again on Monday.

Alan Eyre, a distinguished diplomatic fellow at the Middle East Institute, told Al Jazeera that Israel was trying to push the US into participating in its attacks on Iran. “Ultimately, Israel’s best case scenario is to encourage, if not regime change, then the toppling of this regime,” he said.

“Iran’s options are very limited; they have to respond militarily to save face domestically [but] it is very unlikely that Iran can cause enough damage to Israel internally or put enough pressure to stop bombing,” Eyre said.

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Tehran, Iran – Iran’s Foreign Minister Abbas Araghchi says Israel’s attacks on his country could not have materialised without the agreement and support of the United States.

“We have well-documented and solid evidence of the support provided by American forces in the region and their bases for the military attacks of the Zionist regime,” Iran’s top diplomat told reporters during a news conference in the capital, Tehran, on Sunday.

He said, more importantly, US President Donald Trump has publicly and explicitly confirmed he knew about the attacks, that they could not have happened without US weapons and equipment, and that more attacks are coming.

“Therefore, the US, in our opinion, is a partner in these attacks and must accept its responsibility.”

Araghchi said Tehran has received messages from Washington through various intermediaries that it was not involved with Israel’s attacks on Iran’s nuclear facilities in Isfahan’s Natanz, but it “does not believe this claim” due to evidence to the contrary.

“It is necessary for the US government to clearly state its position and explicitly condemn the attack on nuclear facilities,” he said. “This act is condemned under international law, and our expectation is that the US government, in order to prove its good faith regarding nuclear weapons, will condemn the attack on a peaceful nuclear facility and distance itself from this conflict.”

Pointing out that the Israeli attacks came as Iran and the US were slated to hold a sixth round of nuclear negotiations mediated by Oman on Sunday, Araghchi emphasised that Israel “will do anything” to stop the talks and diplomacy, as it has done in the past.

‘Major strategic mistake’

Iranian authorities said the Israeli attacks, which have targeted residential and military areas in Tehran as well as many cities across the country since Friday, have killed at least 80 people, including civilians.

Multiple top-ranking commanders of the Iranian armed forces and the Islamic Revolutionary Guard Corps (IRGC) were also assassinated, as were a number of nuclear scientists and university professors.

Iran has so far launched two nights of retaliatory attacks on Israel’s Tel Aviv and Haifa, using hundreds of missiles and drones, which have led to at least 10 deaths and dozens of injuries.

Araghchi told reporters that Iran’s attacks overnight into Sunday started targeting Israel’s energy infrastructure after the Israeli army hit refineries, power stations and oil reserves across Iran.

As sounds of explosions and air defences rang across Tehran in the early hours of Sunday, Israel hit a fuel reserve in western Tehran’s Shahran neighbourhood that caused a massive fire. Authorities said the fire was contained after several hours and that most of the fuel in the reserve was taken out before the air raids.

On Saturday, the Israeli military hit Asaluyeh on Iran’s southern shores in the province of Bushehr, hitting Phase 14 of South Pars, the largest gasfield in the world.

Araghchi said the attack was a “major strategic mistake” that was likely carried out deliberately with the intention of dragging other nations into the war.

“The Persian Gulf region is extremely sensitive and complex, and any military development there could involve the entire region, and even the whole world,” he said, using the name of the Gulf, which is also commonly known as the Arabian Gulf.

Iran and Israel have said their attacks will continue for now, and the Israeli military on Sunday issued a threat to Iranians to stay away from what it called “military weapons production factories and their support institutions”, or risk being killed.

But Araghchi said Tehran is willing to stop if Israel halts its attacks, and urged the international community to intervene and condemn Israel.

‘National battle’

Iranian newspapers on Sunday dedicated their front pages to the war, with more hardline outlets manoeuvring on Iran’s attacks while others focusing on a sense of national unity.

Keyhan, whose editor-in-chief is appointed by Supreme Leader Ayatollah Ali Khamenei, published the headline: “We will finish the war and Israel together”, and wrote about “unprecedented damages in occupied territories” caused by the Iranian missiles.

“National battle”, read a headline from the reformist Ham-Mihan, with Etemad newspaper writing about “Israel’s gamble on a minefield” and Sazandegi highlighting “Slap for Tel Aviv” in its headline story.

For the first time in nearly four decades, Iranian state television on Saturday broadcast a victory march. It was last heard in the 1980s during Iran’s eight-year invasion by neighbouring Iraq, which was backed and armed by major powers.

Mehdi Chamran, chairman of the City Council of Tehran, said the capital will soon be forced to use the same shelters used during that war, as well as metro stations and some car parks, as no new dedicated shelters have been built.

Government spokeswoman Fatemeh Mohajerani said on Sunday that all flights are cancelled until further notice and tried to assure people that measures are under way to ensure the state can provide basic necessities, including fuel, in case of a prolonged conflict.

The Tehran Chamber of Guilds announced that all business associations, grand bazaars and malls were open in the capital, but government workers were told to work remotely until at least Wednesday, in an indication that Tehran is expected to be hit again.

The Tehran Stock Exchange was also closed on Sunday, with its director saying the decision to keep it closed or open it for Monday will be taken on the day, considering Sunday night’s developments.

Iran’s currency, the rial, has taken another nosedive since the start of the latest conflict, having depreciated from about 840,000 against the US dollar before the Israeli attacks to about 955,000 on Sunday.