Oil prices surge as Iran prepares missile attack on Israel amid rising tensions
Photo showing an oil platform. (Photo via Bloomberg)
Oil prices surged amid reports that Iran is poised to launch a missile attack against Israel, raising concerns about escalating tensions in the Middle East and the potential for disruptions in crude supply.
On Tuesday, oil prices rebounded, climbing nearly 3% after news emerged regarding Iran’s missile preparations. Following the reports, Brent crude futures increased by $1.84, or 2.6%, to $73.54 a barrel, while U.S. West Texas Intermediate (WTI) crude rose by $1.88, or 2.8%, to $70.05.
A senior White House official, speaking on condition of anonymity, confirmed that the U.S. has indications of an imminent ballistic missile attack by Iran against Israel. Additionally, the U.S. is taking steps to bolster Israel’s defenses in anticipation of the possible strike, which the official warned could have serious repercussions for Iran.
Prior to this development, oil prices had been hovering near a two-week low, influenced by expectations of increased supply and sluggish global demand, which outweighed concerns about escalating conflict in the region and its impact on crude exports.
OPEC+ meets to evaluate conditions
Meanwhile, on October 2, a panel of ministers from the OPEC+ group is reportedly set to meet to evaluate market conditions, although no policy changes are expected.
Iran’s potential direct involvement in the conflict heightens the risk of supply disruptions from a region that accounts for a third of the world’s crude production.
Despite Israel’s ongoing operations against Iran’s network of proxy militias, oil flows have not been significantly affected. Recent escalations in hostilities have not provided a substantial boost to oil prices, which remain constrained by rising supply forecasts and lackluster demand.
Tensions in the Middle East intensified following the killing of Hezbollah leader Hassan Nasrallah last week. In response, Israel launched airstrikes in Beirut and initiated what it termed “targeted ground raids” with its military forces.
