Oil Prices Jump More than 5% after Israel Strikes Iran
Oil prices jumped more than 5% on Friday to hit the highest in more than two months after Israel said it struck Iran, raising concerns of escalating tensions in the Middle East that could disrupt oil supplies.
Brent crude futures rose $3.91, or 5.64%, to $73.27 a barrel by 0146 GMT, the highest since April 3. US West Texas Intermediate crude was up $4.09, or 6.01%, at $72.13 a barrel, Reuters reported.
Israel said early on Friday that it struck Iran, and Iranian media said explosions were heard in Tehran as tensions mounted over US efforts to win Iran's agreement to halt production of material for an atomic bomb.
"The Israeli attack on Iran has heightened the risk premium further," MST Marquee senior energy analyst Saul Kavonic said.
"The conflict would need to escalate to the point of Iranian retaliation on oil infrastructure in the region before oil supply is actually materially impacted," he said, adding that Iran could hinder up to 20 million barrels per day of oil supply via attacks on infrastructure or limiting passage through the Strait of Hormuz in an extreme scenario.
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Netanyahu calls on Iranians to unite against ‘evil and oppressive regime'
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Iran said in a letter to the Council that it would respond decisively and proportionally to Israel's "unlawful" and "cowardly" acts. The price of crude leapt on fears of wider retaliatory attacks across a major oil-producing region, although there were no reports that oil production or storage was damaged. OPEC said the escalation did not justify any immediate changes to oil supply. An Israeli security source said Mossad commandos had been operating deep inside the country before the attack, and the Israeli spy agency and military had mounted a series of covert operations against Iran's strategic missile array. Israel also established an attack-drone base near Tehran, the source added. The military said it had bombarded Iran's air defenses, destroying "dozens of radars and surface-to-air missile launchers". 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