Oil prices were volatile on Friday, jumping as much as 3% at one point after Israel hit back with a retaliatory attack on Iran, further escalating tensions in the Middle East.
Brent crude oil prices briefly rose above $90 a barrel after a U.S. official told ABC News that Israel launched a missile attack against Iran late Thursday.
The attack comes after Iran rained down more than 300 drones and missiles on the Jewish state last Saturday, nearly all of which were intercepted by Israel and its allies.
However, military officials said Israel’s early morning retaliatory strikes appeared to be “limited,” although Iranian officials said: Reuters The explosions heard in Isfahan were said to be the result of the activation of Iranian air defense systems.
The official added that there were no missile strikes against Iran and Brent prices fell, erasing previous gains.
Brent, the international benchmark, rose 0.2% to close at $87.29 per barrel.
Meanwhile, U.S. oil benchmark US West Texas Intermediate rose 0.5% to settle at $83.14 per barrel, also erasing early gains.
said Clay Seagle, Director of Global Petroleum Services for Rapidan Energy. CNBC As the war in the Middle East intensifies, a “big risk” to the oil market is the disruption of oil exports from the Arabian Gulf.
For reference, the region produces more than 20 million barrels of oil per day.
According to CNBC, if the Strait of Hormuz, located between Oman and Iran, were to be severed, oil prices could soar as about a fifth of the world’s oil production flows through the narrow waterway every day. It is said that there is.
“The Hormuz disruption would be very serious for the global economy and could send oil prices up to triple digits and reach demand-destroying levels,” Siegle told CNBC.
Israel claims it actually carried out the attack, which Israel’s controversial Minister of National Security Itamar Ben Gvir denounced as “uncool” in a post on X.
Ben Gvir’s comments also drew criticism from Prime Minister Benjamin Netanyahu’s inner circle for violating national security, Israel Channel 12 reported.
Israel is reportedly still assessing the effectiveness of the airstrike and the damage caused, but it appears the strike targeted the city of Isfahan, home to Iran’s Natanz nuclear research facility and major air base. It will be done.
A scroll was shown on Iranian state television warning viewers about “loud noise” near Isfahan, but no other information was provided, according to the Associated Press.
State television claimed that all nuclear facilities in the region were “completely safe.”
Iranian government officials announced on state television that all flights bound for the cities of Tehran, Isfahan and Shiraz have been diverted. era of Israel.
Additionally, Iranian air defense systems were activated in several provinces after the first explosions were heard, state news agency IRNA reported. CNN.
The Biden administration “did not support” Israel’s response, a US official told the outlet. It backs up Joe Biden’s warning to Prime Minister Benjamin Netanyahu after Saturday’s attack on Iran that the United States would not join in the counterattack.
“We have nothing to offer at this time,” a Pentagon spokesperson told the Post on Thursday when asked about the reported airstrikes.
