Prior to the war with Iran, the world had more than enough oil and gas, and as a result it was very inexpensive. Now we have transitioned into a time when that is no longer true at all. Both sides in this war are now specifically targeting oil and gas infrastructure, and that is going to have devastating consequences. Even if the war ended tomorrow and the Strait of Hormuz was immediately reopened, there is no way that conditions would return to how they were just before the war any time soon. Oil and gas facilities that have been damaged could take many months to repair. Oil and gas facilities that have been completely destroyed could take years to rebuild. What this means is that oil and gas prices are going to remain at elevated levels for an extended period of time, and that is really bad news because our entire way of life is based on cheap energy.

On Wednesday, a stunning series of airstrikes absolutely pummeled the South Pars gas field in Iran…

Iran said the US and Israel struck its giant South Pars gas field in the Persian Gulf, the latest attack on energy assets in the region-wide conflict.

Oil prices jumped after Iranian state TV reported the airstrike, which raised fears of further risks to global crude and gas supplies. Gulf producers have significantly reduced output during the 19-day war, particularly due to the effective shuttering of the Strait of Hormuz.

If confirmed, the assault would mark the first time the US and Israel have targeted Iran's upstream oil and gas facilities since starting the war on Feb. 28.

This was an enormous escalation.

Up to this point, the U.S. and Israel had left the South Pars gas field alone.

As a result of the airstrikes, production at two of the primary refineries at South Pars came to a screeching halt…

The attack effectively halted production at two of the field's refineries, which typically put out about 100 million cubic meters of gas a day, according to state media.

It would be difficult for me to overstate how important this is.

South Pars is the home of "the largest known gas reserve in the world", and it normally produces approximately 70 percent of all natural gas used in Iran…

The South Pars/North Dome mega-field is the largest known gas reserve in the world. The field supplies around 70 percent of Iran's domestic natural gas. Iran, which shares the massive field with energy giant Qatar, has been developing its side since the late 1990s.