U.S. Scrambles to Ease Energy Crisis as Attacks Rattle Markets
NY Times -March19th2026
The Trump administration said on Thursday that it was considering new steps to shore up oil supplies, as it scrambles for solutions to a global energy crisis set off by the U.S.-Israeli bombing of Iran and Iran’s wide-ranging retaliatory strikes.
Treasury Secretary Scott Bessent told Fox Business that the U.S. government “may unsanction the Iranian oil” that is already being shipped, about 140 million barrels, and that the United States could also release more oil from its own strategic reserves.
It was the latest sign of how serious the energy crisis has become and reflected the Trump administration’s desperation to reduce crude oil prices. Last week, the United States removed sanctions on Russian oil that is currently at sea and even allowed Iranian-linked ships and companies to transport and sell Russian oil on the open market.
Tit-for-tat attacks in the Persian Gulf have sent oil and natural gas prices soaring. The price of Brent crude, the international benchmark for oil, jumped by nearly 10 percent to $118 a barrel Thursday morning. European natural gas prices surged as much as 30 percent.
Qatar, a major global energy supplier, said that Iranian attacks had damaged gas sites, including the Ras Laffan terminal, the world’s largest liquefied natural gas facility. Saad al-Kaabi, the C.E.O. of QatarEnergy, a state-owned energy company, told Reuters that the Iranian attacks had knocked out nearly a fifth of the company’s liquefied natural gas export capacity, and that repairs would take three to five years.
The Iranian attacks in Qatar were in retaliation for an Israeli attack on a major gas field on Wednesday. Drone attacks also caused fires at two state-owned refineries in Kuwait, and a drone fell at a key energy export terminal in Saudi Arabia. In the United Arab Emirates, officials said that the authorities had responded to incidents at gas facilities and an oil field caused by debris from missile interceptions.
Abbas Araghchi, Iran’s foreign minister, said on social media that Iran would show “ZERO restraint” if its energy infrastructure were struck again.
Still, Defense Secretary Pete Hegseth projected confidence at a news briefing at the Pentagon on Thursday, telling reporters: “We’re winning decisively and on our terms.” He declined to offer a timeline for when the war might end.
The Pentagon will need $200 billion in additional funding for the war in Iran, according to a military official and an administration official who were not authorized to speak publicly on the matter. The request, reported earlier by the Washington Post, has gone to the White House, the military official said. “Obviously, it takes money to kill bad guys,” Mr. Hegseth said when asked about the request on Thursday. “As far as the $200 billion, I think that number could move,” he added.
Here’s what else we are covering:
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Washington: Prime Minister Sanae Takaichi is scheduled to meet with Mr. Trump on Thursday. Tulsi Gabbard, the director of national intelligence told a House committee hearing that Mojtaba Khamenei, the new supreme leader of Iran, had been badly injured in an Israeli attack.
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Saudi Arabia: Saudi Arabia’s foreign minister said that the country reserved the right “to take military actions if deemed necessary” to protect itself from Iranian attacks. The kingdom and the Islamic republic re-established diplomatic relations in 2023 but “what little trust” there was between them has “completely been shattered,” he said. Read more ›
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Iran: People in Tehran and elsewhere in Iran have described intense attacks that have caused widespread fear and anger. As Israel has killed more of Iran’s military and government leadership in recent days, the targeted killings, as well as strikes on police stations, have often happened in densely packed residential neighborhoods. Read more ›

The Pentagon has asked for $200 billion in funding for the war in Iran, according to a military official and an administration official, a significant sum adding to the costs of an already divisive campaign.
The request has been sent to the White House, the military official said, which will review it before any request for funds is formally submitted to Congress. The officials spoke on condition of anonymity to discuss the proposal. The request was reported earlier by The Washington Post.
“Obviously, it takes money to kill bad guys,” Defense Secretary Pete Hegseth said when asked about the request during a news conference on Thursday, adding: “As far as the $200 billion, I think that number could move.”
On Capitol Hill, the sum — nearly a quarter of the country’s entire annual defense budget — is already raising eyebrows among some moderate Republicans who would be key to approving the funds.
“It’s considerably higher than I would have guessed, but I don’t know how it’s broken down,” Senator Susan Collins, Republican of Maine and the head of the chamber’s Appropriations Committee, told reporters Wednesday evening. The White House had not passed along any request to Congress, she said.
Senator Lisa Murkowski, Republican of Alaska and a key swing vote, said that the Trump administration would have to make a more concerted effort to engage Congress on the war before such a request could be approved.
“You just can’t come up here with an invoice and say, you know, ‘pay this’ and expect to have great cooperation going forward,” she told reporters on Wednesday.
It was not immediately clear how long the Pentagon intended for the $200 billion for the Iran war to last, or what operations it would cover. In 2014, the Congressional Research Service calculated that the United States spent $815 billion in direct costs for the war in Iraq over 13 years. A recent report from the Council on Foreign Relations, compiled from official government statistics, found that the United States had dedicated $188 billion in aid to shore up Ukraine’s war effort since Russia invaded in early 2022.
The funds for those wars were not approved as lump sums, but meted out over several appropriations cycles after extended, and oftentimes heated, debate about mounting costs.
Last week, Pentagon officials told lawmakers that the first six days of the war against Iran had cost more than $11.3 billion. Since then, President Trump has threatened to escalate the fighting, including floating the idea of putting American troops on the ground even as he has alternated the threats with suggestions that the United States might conclude its military campaign soon.
But the $200 billion figure suggests that the U.S. military is preparing for an extended engagement in Iran.
Two days of attacks on Gulf energy sites
Iran hit energy infrastructure across the Gulf after Israel attacked a major Iranian gas field.
Price of Brent Crude Oil
Tulsi Gabbard, the director of national intelligence, said during the House Intelligence Committee hearing on Thursday that the United States has “high confidence” that it knows where Iran is storing its cache of highly enriched uranium. Gabbard declined to say where it was in the open session before the committee. She referred a question about how the United States could destroy that stockpile to the classified session that is set to follow the open hearing.
A British correspondent for RT, the Russian state broadcaster, and his cameraman were wounded in an Israeli strike on a bridge in southern Lebanon on Thursday, the network said. Footage published on social media showed a projectile landing meters from where the reporter, Steve Sweeney, and his cameraman, Ali Rida, were filming. The footage has been verified by The New York Times.
The Israeli military confirmed in a statement that it had targeted the crossing shortly after noon, and said that it had issued warnings for civilians and journalists to leave the area beforehand. It did not clarify if this referred to broad evacuation warnings issued on Wednesday that bridges in the region would be targeted.


The attack on Qatar’s Ras Laffan Industrial City, the world’s largest liquefied natural gas facility, caused global oil and gas prices to soar on Thursday, and stoked concerns that the war in the Middle East is set to deepen a global energy crisis.
Officials in Qatar, a major energy supplier, blamed Iran for the attack, which came after an Israeli strike on Iran’s South Pars offshore gas field.
The extent of the damage was not clear but the attack has spooked investors, and analysts warned that it could take months to repair.
Here is what to know about Ras Laffan and why the threat to Qatar’s energy infrastructure is having a global impact.
How important is Ras Laffan?
The Ras Laffan complex is the heart of Qatar’s natural gas processing operations.
The facility is approximately a third of the size of New York City and was built 30 years ago about 50 miles from the capital, Doha. It accounts for roughly a fifth of the global supply of liquefied natural gas.
Qatar is the world’s third-largest exporter of L.N.G., and has made hundreds of billions of dollars from the industry over decades, helping to turn itself into a global energy superpower.
Most of Qatar’s natural gas comes from the North Dome field, which is part of the world’s largest offshore natural gas reservoir. Qatar shares the field with Iran.
How will the damage hit the global energy market?
Qatar is a major supplier to Europe and Asia, and the attack sent European natural gas prices surging by as much as 30 percent on Thursday.
Qatar had stopped exporting L.N.G. earlier in the war, which was sparked by Israeli and U.S. attacks on Iran, and some analysts worry that the disruption to Ras Laffan mean resuming the trade could take months once the conflict ends.
“The issue of taking out an L.N.G. terminal is they take a while to repair,” said Sarah Emerson, an energy analyst with the Center for Strategic and International Studies, a think tank. “This is not a simple facility to replace.”
“This is potentially a really significant disruption to the global natural gas market,” she added. “There’s a lot of countries that export a little, there aren’t that many countries that export a lot.”
The United States is the world’s biggest L.N.G. exporter, but it has maxed out its capacity on what it can sell overseas, Ms. Emerson said.
Is this a new front?
In a joint statement, the foreign ministers for several Arab and Muslim countries condemned the “deliberate” Iranian attacks on civilian infrastructure, including “oil facilities, desalination plants, airports, residential buildings, and diplomatic premises.”
Iran is following through on its threats to strike the energy infrastructure of American allies in the Persian Gulf if its energy sites are targeted, said Justin Dargin, a nonresident senior fellow at the Middle East Council of Global Affairs, a Doha-based think tank.
More of these types of attacks are part of Iran’s strategy to inflict pain on the Gulf countries and persuade them to pressure the U.S. and Israel to “wrap this war up,” he said.
If more of Iran’s energy infrastructure is attacked, Mr. Dargin added, “Iran will start to target more of the backbone of energy facilities in the Gulf region.”
The World Trade Organization said Thursday that the Middle East war could slow global trade and economic growth more than expected, as high energy prices disrupt economic activites and travel, and transport disruptions put pressure on food supplies and trade. The W.T.O. had earlier forecast trade in goods to grow by 1.9 percent in 2026, down sharply from 4.6 percent in 2025. But that growth could drop by another by another 0.5 percentage points if oil and gas prices remain elevated all year.
The Israeli military said Thursday that it had struck Iranian naval vessels, including missile ships, a day earlier at a military port on the Caspian Sea. The strikes add to the sustained U.S. targeting of Iranian naval forces, whose destruction is one of the top stated aims of the American military campaign.
More than 1,000 people have now been killed in Lebanon since fighting erupted earlier this month between Israel and Hezbollah, the Iran-backed militant group, according to the Lebanese health ministry. At least 118 children are among the dead, it said.

Iran’s foreign minister on Thursday warned of “zero restraint” if the country’s infrastructure is struck again, after Israeli attacks on a major gas field triggered a wave of retaliation across the Gulf. Abbas Araghchi said on social media that Iran had so far used only a “fraction” of its power and had shown restraint because it received requests for de-escalation. He did not say who made those requests.
The Pentagon will need $200 billion in additional funding for the war in Iran, a military official and an administration official said. They were not authorized to speak publicly on the matter. The request, first reported by the Washington Post, has gone to the White House, the military official said. “Obviously, it takes money to kill bad guys,” Defense Secretary Pete Hegseth said when asked about the request during a news conference on Thursday. “As far as the $200 billion, I think that number could move,” Hegseth added.


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