Crude oil prices rose 5% after US President Joe Biden said Washington was “discussing” the possibility of an Israeli strike on Iran’s oil industry in retaliation for Tehran’s missile attack.
Israel is considering a limited strike on Iran’s oil sector as a “significant retaliation” for Iran’s strike on its military bases, according to the source. However, Iran said it would retaliate if Israel struck any part of its oil sector in the Persian Gulf.
Brent crude oil prices rose 10% to $77.13 a barrel following Iran’s missile attack on Israel. The price hike comes at a critical time for global energy markets, although prices remain below levels seen earlier this year due to weaker demand from China and plentiful supplies from Saudi Arabia.
Increased violence in the Middle East and the threat of further escalation are now putting oil markets under intense pressure. Traders are also watching closely for any signs of disruption to supply routes.
