Oil prices jumped about 4% on Tuesday following reports Iran had launched a missile attack on Israel.
Brent futures were up $2.50, or 3.5%, to $74.20 a barrel by 11:50 a.m. EDT (1550 GMT), while U.S. West Texas Intermediate (WTI) crude rose $2.54, or 3.7%, to $70.71.
Before news of a possible missile attack from Iran, the oil market was trading down near a two-week low as the outlook for increased supplies and tepid global demand growth outweighed fears over an escalating Middle East conflict and its impact on crude exports from the region.
An Israeli counter attack on Iranian oil production or export facilities is feared to cause a material disruption, potentially more than a million barrels per day, news reports said.
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