Israel has carried out a major strike on Iran’s Pars petrochemical complex in Assaluyeh, damaging several facilities at the country’s largest petrochemical hub, according to Iran’s National Petrochemical Company (NPC). The attack marks one of the most significant escalations yet in the ongoing US-Israeli campaign against Iran’s energy and petrochemical infrastructure, with potential ripple effects across global petrochemical supply chains, feedstock flows, and Middle East energy markets.
What Happened at the Pars Petrochemical Complex
NPC confirmed that “a number of ancillary facilities” linked to the Pars Special Economic Energy Zone were hit on Monday, with damage assessments still underway. Iranian state media reported that two critical utilities, the Jam and Damavand power and desalination plants, were among the targets. Both supply electricity and water to the broader complex, and their disruption has triggered widespread power outages across the Assaluyeh hub.
Israeli Defence Minister Israel Katz described the operation as a “powerful strike on the largest petrochemical facility in Iran,” claiming the complex accounts for roughly half of Iran’s total petrochemical output. He framed the attack as a “severe economic blow to the Iranian regime.”
The Pars complex hosts at least 21 operating petrochemical plants and draws feedstock from the giant offshore South Pars gas field, which Iran shares with Qatar. South Pars supplies 70–75% of Iran’s gas production and feeds much of the country’s petrochemical and gasoline sectors, making any disruption at Assaluyeh strategically significant for Iranian export revenues.
A Widening Campaign Against Iran’s Petrochemical Industry
Monday’s strike is the latest in a series of US-Israeli operations targeting Iran’s downstream energy assets. A petrochemical complex in Marvdasht, Fars province, was also hit on Monday, sparking a fire that was later contained. On Saturday, the Mahshahr petrochemical hub in Khuzestan province was struck, shutting down production across one of Iran’s most important industrial clusters. Iranian state media reported damage at the Fajr 1, Fajr 2, Karun, Razi, and Bandar Imam petrochemical companies.
The campaign follows an earlier 18 March drone attack that took at least four sour gas treatment plants in Assaluyeh offline. That incident triggered Iranian retaliatory strikes on energy facilities in Saudi Arabia, the UAE, and Qatar, including the Ras Laffan LNG complex. US President Donald Trump subsequently warned that Israel would refrain from targeting South Pars itself unless Iran attacked Qatar.
Market and Supply Chain Implications
Iran is a major global supplier of methanol, urea, polyethylene, and other petrochemicals, much of which is routed to buyers in Asia, including China and Turkey. Sustained disruption at Assaluyeh and other key complexes could tighten regional petrochemical supply, support methanol and olefin pricing, and force Asian buyers to seek alternative cargoes from the Gulf, Southeast Asia, or the US Gulf Coast. Power and desalination outages also raise the risk of prolonged outages even at undamaged units, since restart cycles for large petrochemical plants are slow and costly.
The strikes come as Trump has renewed threats to target Iran’s electric power infrastructure unless Tehran guarantees unobstructed shipping through the Strait of Hormuz. Both Washington and Tehran have rejected the latest ceasefire proposal floated by Pakistan, suggesting further escalation risk in the weeks ahead.
SuperMetalPrice Commentary:
The targeting of Assaluyeh marks a clear shift from symbolic strikes to systematic degradation of Iran’s petrochemical export capacity. With the Pars complex accounting for around half of national output and drawing feedstock from South Pars, even partial damage to power and desalination infrastructure can cascade across multiple downstream plants, tightening global methanol, urea, and polyolefin balances at a time when Asian buyers are already navigating thin margins.
For metal and commodity markets, the key watchpoints are Strait of Hormuz shipping risk, potential Iranian retaliation against Gulf energy assets, and any spillover into industrial gas, ammonia, and fertilizer pricing. A sustained campaign could reshape Middle East petrochemical trade flows and add a fresh geopolitical premium to energy-linked industrial commodities through the second quarter.
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