Oil prices jumped more than 7% on Friday, hitting their highest in months after IsraelĀ said it struck Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies.
Reuters reports that Brent crude futures rose $5.29, or 7.63%, to $74.65 a barrel by after hitting an intraday high of $75.32, the highest since 2 April. US West Texas Intermediate crude was up $5.38, or 7.91%, at $73.42 a barrel after hitting a high of $74.35.
āThe Israeli attack onĀ IranĀ has heightened the risk premium further,ā MST Marquee senior energy analyst Saul Kavonic said.
āThe conflict would need to escalate to the point of Iranian retaliation on oil infrastructure in the region before oil supply is actually materially impacted,ā he said, adding that Iran could hinder up to 20 million barrels per day of oil supply via attacks on infrastructure or limiting passage through the Strait of Hormuz in an extreme scenario.
