Energy Geopolitics · · 9 min read

Tehran Strikes Expose Civilian Infrastructure Damage as Oil Hits $91

Joint US-Israeli strikes on Iran have killed over 1,300 people and hit schools, hospitals, and historic sites, while satellite imagery reveals extensive targeting of police stations in dense urban areas—raising legal questions as crude prices surge to their highest level since late 2022.

Satellite imagery confirms that coordinated US-Israeli strikes on Iran have extensively damaged civilian infrastructure in Tehran, including police stations in densely populated neighborhoods, schools, and hospitals, with the death toll surpassing 1,332 as of March 6.

The strikes, which began February 28 and killed Supreme Leader Ali Khamenei in the opening salvo, have evolved into what analysts describe as the most extensive bombardment campaign in the region since the 2003 Iraq invasion. According to Al Jazeera, Iran’s Ministry of Foreign Affairs reported that strikes have targeted 33 civilian locations nationwide, including hospitals, schools, residential areas, the Tehran Grand Bazaar, and the historic Golestan Palace—a UNESCO World Heritage Site. The Iranian Red Crescent stated that more than 3,600 civilian sites have suffered damage, including 3,090 homes, 528 commercial centers, and 13 medical facilities.

Visual Verification Distinguishes Civilian From Military Targets

Open-source investigations using commercial satellite imagery from Planet Labs, Vantor, and Airbus have provided independent verification of strike patterns across Tehran. Bellingcat reviewed damage to numerous buildings throughout Tehran and cross-referenced locations with mapping data, finding that several sites listed as police stations were destroyed in dense urban areas. Video shared by Iranian state broadcaster Tasnim showed the aftermath of a strike on what it described as a diplomatic police station near Ferdowsi Square, one of downtown Tehran’s main intersections, with at least two people on the ground and substantial damage to nearby buildings.

The targeting pattern extends beyond government facilities. According to Al Jazeera, Iran’s largest sports complex, Azadi Stadium, was bombed. The World Health Organization verified 13 attacks on healthcare in Iran, resulting in four healthcare worker deaths and 25 injuries, WHO Director-General Tedros Adhanom Ghebreyesus confirmed at a March 5 briefing. At least 181 of the more than 1,300 killed are children, according to UNICEF data reported by Al Jazeera.

Operation Epic Fury: First Week
Total strikes (US/Israel)~2,000
Casualties in Iran1,332
Damaged civilian sites3,600+
Oil price surge (WTI)+60%

School Strike Crystallizes Legal Questions

A strike on a girls’ school in Minab on the first day of the conflict killed at least 165 schoolgirls and staff, according to Iranian state media. While Israel denied the attack, The New York Times reported evidence suggesting it was carried out by the US. CENTCOM confirmed it was investigating internally. The school was less than 60 meters from the Sayyid al-Shuhada military complex, raising questions about proportionality and precautions under international humanitarian law.

UN Secretary-General António Guterres told the Security Council that US and Israeli airstrikes violated International Law, including the UN Charter. Legal scholars have noted the campaign lacks justification under the Charter’s self-defense provisions. International Crisis Group senior adviser Brian Finucane stated that the scattershot rationales provided by the Trump administration do not amount to serious international legal arguments.

“The prohibition on the use of force is a relatively recent innovation. This rule is policed through the actions and reactions of states, and it feels fragile right now.”

— Rebecca Ingber, Law Professor

The targeting of internal security infrastructure—including Basij headquarters, IRGC facilities, and police stations across dozens of cities—suggests a campaign designed to dismantle Iran’s capacity for domestic control. Foundation for Defense of Democracies reported that since February 28, targets have included Basij bases, IRGC headquarters, police stations, and special police units in Tehran and at least 15 other cities including Isfahan, Tabriz, Shiraz, and Ahvaz.

Energy Markets Price Regional Destabilization

Oil prices recorded their largest weekly gain on record as the conflict effectively closed the Strait of Hormuz to tanker traffic. NBC News reported that US crude spiked more than 12% on Friday alone to over $91 per barrel—the highest price since late 2022—with prices up nearly 60% since the start of the year. Brent crude broke $94 per barrel, while the Dow Jones Industrial Average suffered its worst week since April 2025.

The strait, which normally carries about 20% of global oil supply, has seen vessel traffic plummet from 138 ships daily to just two, according to OilPrice.com. JPMorgan Chase analysts wrote that commercial traffic through the strait remained virtually nonexistent on day six, with the market shifting from pricing pure geopolitical risk to grappling with tangible operational disruption as refinery shutdowns and export constraints materialize.

Oil Price Trajectory: Pre-Strike to Week One
Date WTI Crude Brent Crude
Feb 27 (pre-strike) $67/bbl ~$70/bbl
Mar 2 (Day 3) $77/bbl $77/bbl
Mar 7 (Day 7) $91/bbl $94/bbl

Analysts warn prices could surpass $100 per barrel if the closure extends beyond several weeks. JPMorgan head of global commodities research Natasha Kaneva stated in a client note that Gulf countries’ oil storage capacity could be exhausted in as soon as three weeks, forcing production to halt. In that scenario, Kaneva projected oil could surge to $120 per barrel. Kuwait has already begun cutting production at some oil fields after running out of storage room, according to The Wall Street Journal.

US gas prices at the pump have jumped 32 cents per gallon in seven days to $3.31—the highest since August 2024—while diesel soared 51 cents to $4.26 per gallon, the highest since November 2023, according to GasBuddy data cited by CBS News.

Iran’s Retaliation Spreads Across Gulf States

Iran has launched over 500 ballistic missiles and nearly 2,000 drones since February 28, with approximately 40% aimed at Israel and 60% at US targets across the region, according to Fars News Agency. The campaign marked the first time Iran attacked all six Gulf Cooperation Council countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

Satellite imagery analyzed by ABC News shows damage at the US Fifth Fleet headquarters in Manama, Bahrain, including the destruction of several large buildings and two satellite communications terminals. At the Ali Al Salem Base in Kuwait, which hosts US troops, several buildings show signs of projectile impacts. Iranian strikes also hit Saudi Arabia’s Ras Tanura refinery—one of the world’s largest—and targeted Amazon data centers in Bahrain and the UAE.

Context

Israel’s military assessed on March 3 that the combined force has destroyed around 300 Iranian missile launchers since the war began, consistent with an Israeli media report of a 70% drop in Iranian missile fire toward Israel. Israel claims to have destroyed 80% of Iran’s air defenses and at least 60% of its missile-launching capability.

The conflict has spread to Lebanon, where Israel has conducted heavy strikes after Hezbollah fired rockets into northern Israel. NPR reported that Lebanese officials say Israeli strikes have killed 123 people and wounded more than 600 since the war began, with more than 95,000 displaced. Israel has conducted 26 rounds of attacks in Beirut’s Dahiyeh suburb, issuing mass evacuation orders affecting hundreds of thousands.

What to Watch

The immediate question is whether tanker traffic through the Strait of Hormuz resumes within weeks or remains closed for an extended period—a scenario that would push oil above $100 and trigger global inflation concerns. Gulf state storage capacity becomes critical; if exhausted, production shutdowns would remove millions of barrels from global supply regardless of OPEC+ decisions to increase output.

On the legal front, documentation being compiled by the Iranian Red Crescent and submitted to the International Committee of the Red Cross could form the basis for future proceedings at the International Criminal Court or other tribunals. The UN’s demand for investigations into strikes on protected sites—particularly schools and hospitals—sets up a potential accountability mechanism, though enforcement remains politically constrained.

Iran’s succession process following Khamenei’s death introduces political uncertainty. A three-member transitional council was established March 1, but the timeline for appointing a new Supreme Leader remains unclear. Trump has stated he wants involvement in selecting Iran’s next leader—a position with no precedent in international relations and one that further tests already strained legal norms around sovereignty and intervention.

Energy traders should monitor not just strike intensity but refinery damage in key Gulf states and any signs of underground pipeline infrastructure coming online to bypass the strait. Geopolitical analysts will track whether Russia’s reported intelligence sharing with Iran—providing targeting data on US positions—marks a deeper security alignment that could complicate Western strategy across multiple theaters.