Israel-Iran conflict: Crude oil prices jump over 13%; Brent crude oil above $73 per barrel
Israel-Iran conflict: An Israeli military official has confirmed the attack, saying that it has targeted “dozens” of sites across Iran, Reuters reported.
Crude oil prices jumped more than 13% on Friday to hit the highest in more than two months after Israel said it struck Iran, raising concerns of over disruption in oil supplies due to the escalating tensions in the Middle East.
Brent crude oil spiked 12.82% to $78.25 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 13.48% to $77.21.
Israel said that it struck Iran, and targeted “dozens” of sites across Iran, Reuters reported.
An Israeli military official has reportedly confirmed the attack, saying that it has Israeli military said it has launched a preemptive strike against Iran’s nuclear program.
Iranian media said explosions were heard in Tehran as tensions mounted over US efforts to win Iran’s agreement to halt production of material for an atomic bomb.
According to a report by Axios, Israel’s defense minister declared a state of emergency throughout Israel. Iran had previously vowed to respond to any attack.
Israel Prime Minister Benjamin Netanyahu said that the country’s strikes on Iran were aimed at hurting its nuclear infrastructure, its ballistic missile factories and many of its military capabilities.
US Secretary of State Marco Rubio called Israel’s strikes against Iran a “unilateral action” and said Washington was not involved while also urging Tehran not to target US interests or personnel in the region.
“The prospect of a broader Middle East conflict threatens to disrupt the Strait of Hormuz, a vital route for about 20% of global oil flows. Adding to geopolitical risks, the US is preparing a partial evacuation of personnel from the region after Iran threatened to target US bases if nuclear talks fail,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Meanwhile, Iran state TV said nuclear scientists Fereydoun Abbasi-Davani and Mohammad Mehdi Tehranchi were killed in an Israeli strike .
Additionally, Iran's Revolutionary Guards Commander-in-Chief Hossein Salami was also reportedly killed in large-scale strikes launched by Israel on Tehran .
Iran's Islamic Republic News Agency (IRNA) reported that Chief Commander of the Islamic Revolution Guards Corps (IRGC) Major General Hossein Salami was “assassinated in an Israeli strike in Tehran”.
The attack comes as tensions have reached new heights over Tehran's rapidly-advancing nuclear programme. The Board of Governors at the International Atomic Energy Agency (IAEA) for the first time in 20 years on Thursday censured Iran over it not working with its inspectors. Iran immediately announced it would establish a third enrichment site in the country and swap out some centrifuges for more-advanced ones, PTI reported.
Crude Oil Price Outlook
For the week, oil is on track for its best performance since late February 2022, noted Jigar Trivedi.
“MCX Crude oil is likely to experience a buyer circuits in a day session and settle later around ₹6,200 per barrel as the session progresses,” Trivedi said.
(With inputs from Agencies)
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