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Oil prices rise on reports of Israel potentially attacking Iran - YAHOO FINANCE
BY Pedro Goncalves Finance Reporter, Yahoo Finance UK
Oil (BZ=F, CL=F)
Oil prices surged in response to reports that Israel is preparing to strike Iranian nuclear facilities, putting the deal that US president Donald Trump has been pursuing with Tehran at risk.
Brent crude futures (BZ=F) climbed 0.8% to $65.89 a barrel, while West Texas Intermediate futures (CL=F) climbed 0.9% to $62.55 a barrel.
CNN reported that, according to several US intelligence officers, Israeli leaders were considering striking Iran, in a move that would squeeze supply and spark further unrest in the region.
The Middle East supplies around a third of the world’s crude oil. Nuclear talks between the US and Iran could pave the way for more barrels being released, however Israel’s plans have thrown this into question.
Read more: FTSE 100 LIVE: Stocks muted as UK inflation surges to highest in over a year
"Such an escalation would not only put Iranian supply at risk, but also (put supply at risk) in large parts of the broader region," ING commodities strategists said.
Considering Iran exports more than 1.5 million barrels per day (bpd), fears of supply disruptions have helped to drive prices higher, said UBS analyst Giovanni Staunovo.
The prospect of higher oil prices will also add to worries over inflation in the UK.
