Oil prices soared 13% on Friday, reaching their highest level in almost five months after Israel launched strikes on Iran, which exacerbated the situation in the Middle East and raised fears of oil supply disruptions.
This is reported by Economic Pravda with reference to Reuters.
The report said that Brent crude futures jumped by USD 6.29 (9.07%) to USD 75.65 per barrel, reaching an intraday high of USD 78.50 - the highest level since January 27.
US WTI crude rose by USD 6.43 (9.45%) to USD 74.47 per barrel after peaking at USD 77.62, the highest since January 21.
As at 9:22 a.m., oil rose as much as 13%, its biggest intraday jump since March 2022.
This was the biggest jump for both grades of oil since 2022, when russia's invasion of Ukraine also sent energy prices soaring.
Israel said it had struck Iran's nuclear facilities, ballistic missile factories and military command centers, launching what it said was a "protracted operation" aimed at preventing Tehran from developing nuclear weapons.
"This has significantly increased geopolitical uncertainty and the oil market is being forced to price in the increased risk of potential supply disruptions," ING analysts led by Warren Patterson said in a note.
Several oil traders in Singapore said it was too early to say whether the strike would affect Middle Eastern oil supplies, as it would depend on how Iran responds and whether the United States intervenes.
“It’s too early to tell, but the market is concerned that the Strait of Hormuz could be blocked,” one trader said.
MST Marquee senior analyst Saul Kavonic said oil supplies would only be seriously affected if Iran retaliated by attacking oil infrastructure in the region.
He added that in a worst-case scenario, Iran could shut down up to 20 million barrels per day by attacking infrastructure or blocking the Strait of Hormuz.
As the Ukrainian News agency earlier reported, oil prices fell on June 6 but were on track for their first weekly gain in three weeks after U.S. President Donald Trump and Chinese leader Xi Jinping resumed trade talks, raising hopes for rising demand in the world's two largest economies.
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