Middle East energy damage may exceed $25B

RIYADH, Saudi Arabia (MNTV) — The financial toll of the ongoing US-Israeli war on Iran is mounting rapidly, with analysts warning that damage to energy infrastructure across the Middle East could exceed $25 billion.

According to research firm Rystad Energy, widespread destruction and shutdowns affecting liquefied natural gas facilities, refineries, fuel terminals and gas-to-liquids plants are driving unprecedented repair costs across the region.

One of the hardest-hit sites is Ras Laffan Industrial City in Qatar, where key LNG infrastructure has been damaged, reducing capacity by around 17 percent. Analysts say full recovery could take up to five years, underscoring the long-term consequences of the conflict.

The site’s operator, QatarEnergy, is among several regional firms that have declared force majeure since the war began, reflecting the scale of disruption to global energy supply chains.

Industry experts warn that the crisis is not just about funding reconstruction but about structural constraints that could delay recovery for years. 

Ongoing attacks, combined with instability around the Strait of Hormuz, are pushing production capacity further away from pre-war levels.

The ripple effects are also being felt in global trade. Hapag-Lloyd CEO Rolf Habben Jansen said the company is facing additional weekly costs of between $40 million and $50 million due to the conflict, costs that are likely to be passed on to consumers worldwide.

Analysts say the war — driven by US military escalation and Israeli strikes — is not only devastating regional infrastructure but also triggering a broader economic shock, with energy markets, shipping costs and global supply chains all under increasing strain.