Oil prices rose on Wednesday as an Israeli air strike appeared to kill a Hamas leader inside Iran, raising fears of a new conflict in the Middle East.
West Texas Crude Oil Prices soared Prices rose more than $3 a barrel on Wednesday to about $78, up more than 4 percent.
Hamas leader Ismail Haniyeh was killed in his Tehran home early Wednesday after attending the inauguration of Iran’s new president. Israel has not claimed responsibility for the attack, but its forces have vowed to remove Hamas and its leaders within months of the Oct. 7 attack that sparked ongoing war in the region.
The attack has raised concerns that Iran could enter a more serious conflict with Israel, whose similar attack on a Hamas leader in Beirut early Tuesday also exacerbated tensions with Hezbollah in the region.
Iran’s Supreme Leader Ayatollah Ali Khamenei said the attack “paved the way for severe punishment” for Israel and vowed retaliation.
The escalation of the Middle East conflict could lead to further increases in oil prices, which would have a knock-on effect on gasoline prices, which have remained stable over the past month despite recent tensions.
The average price of gasoline in the United States is about $3.49 per gallon. According to AAA. That’s lower than the average of $3.76 per gallon during the same period last July.
