Oil prices jumped more than 4 percent after the United States reported an “imminent ballistic missile attack” by Iran against Israel, raising concerns about oil supplies, CBS reported. Later today, the attack took place.
Meanwhile, the Tehran-backed Lebanese group Hezbollah launched a second rocket attack on Tel Aviv today, while the Israel Defense Forces (IDF) launched another “precision” strike near the Lebanese capital Beirut, further raising tensions in the region.
Against this backdrop, Europe’s benchmark Brent crude futures for December delivery rose 4.3 percent to $74.73 a barrel. This is the most significant increase in the price of Brent within a trading session since October last year. U.S. light crude rose 4.5 percent to $71.22 a barrel today.
Oil prices have fallen near multi-year lows in recent weeks despite a series of Israeli strikes in Lebanon targeting Hezbollah, the Wall Street Journal reported.
The expanding campaign against Hezbollah has fueled fears of a direct confrontation between Israel and Iran.
So far, energy markets have remained relatively calm even amid the ongoing violence in the Middle East. According to analysts, however, this will change if the war engulfs the region and disrupts the supply of Iranian oil through the Strait of Hormuz, a key sea route for oil tankers.
