Oil Prices Surge 2% to $76/Per Barrel Amid Israel-Iran Tensions

Samuel Mobolaji

Oil Prices rose significantly in the global commodity market, with Brent Crude climbing 2.19 per cent to $76 per barrel and the US benchmark West Texas Intermediate (WTI) increasing by 2.26 per cent to close at $71.80 per barrel.

The surge comes amid escalating tensions in the Middle East, particularly between Israel and Iran, as the region anticipates potential military action.

Traders exhibited caution on Friday, adjusting market prices only slightly ahead of anticipated ceasefire talks in Gaza. The tension spiked after an Iranian missile attack, leading Israeli officials, including Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant, to convene and strategise the nation’s response.

Reports suggest that US intelligence has obtained leaked classified documents detailing Israel’s plans for a potential assault on Iran.

US President Joe Biden acknowledged last week that he is aware of the timing and method of Israel’s planned attack, with Iranian authorities warning of a “decisive” response. The fear of a military escalation and the potential disruption of oil supply routes have further propelled oil prices upward, as market participants grapple with growing supply concerns.

The upward momentum was also fueled by recent developments, including an Israeli airstrike that reportedly killed Hisham Safieddine, the head of Hezbollah’s Executive Council, along with other key commanders in southern Beirut. The Israeli military confirmed the operation, stating it took place approximately three weeks ago.

Israeli media has suggested that the country may be on the verge of launching an attack on Iran, with unconfirmed reports indicating that such a strike could target oil or nuclear facilities, though Israeli sources maintain that any military action would be confined to Iranian military targets.

Amidst these tensions, the prospect of renewed ceasefire negotiations in Gaza may limit further price hikes. Qatar has announced that US and Israeli delegations will travel to Doha to seek progress in discussions aimed at establishing a ceasefire.

Qatari Prime Minister Mohammed bin Abdelrahman Al Thani confirmed the delegations’ visits during a joint press conference with US Secretary of State Antony Blinken. Netanyahu has also approved an Israeli negotiating team to engage in talks in Qatar next Sunday.