Oil prices surged over 2% on Wednesday following escalating tensions in the Middle East as concerns grew that Iran’s largest-ever military strike against Israel could lead to further conflict and disrupt crude oil production in the region.
International benchmark Brent crude rose by 2.05% to $75.07 per barrel at 10.07 a.m. local time (0707 GMT), up from the previous session’s close of $73.56.
US benchmark West Texas Intermediate (WTI) increased by 2.23% to $71.39 per barrel after closing at $69.83 in the prior session.
Both benchmarks traded higher as regional tensions escalated further after Iran fired around 180 ballistic missiles at Israel amid heightened tensions between the two regional arch-rivals.
Iran’s Islamic Revolutionary Guard Corps (IRGC) said the attack was in response to the assassinations of Hamas leader Ismail Haniyeh, Hezbollah leader Hassan Nasrallah and IRGC commander Abbas Nilforoshan.
Israeli Prime Minister Benjamin Netanyahu said Iran made a “big mistake” and “will pay for it.”
However, Iranian Foreign Minister Abbas Araghchi said a “more severe response” if Israel retaliates against the Iranian missile attack on the country, during phone calls with his counterparts from the UK, Germany and France, the state news agency IRNA reported.
The direct involvement of Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), raised the prospect of disruptions to oil supplies. According to OPEC’s latest monthly oil report, the country produced 3.3 million barrels per day in August.
The Israeli army has launched a devastating military offensive on the Gaza Strip since a cross-border attack by the Palestinian group Hamas last Oct. 7, killing more than 41,600 people, mostly women and children, and injuring over 96,400 others.
The conflict has spread to Lebanon, with the Israeli army launching massive airstrikes against what it calls Hezbollah targets, killing more than 1,073 people and injuring over 2,950 others since Sept. 23, according to the Lebanese Health Ministry.
The international community has warned that Israeli attacks in Lebanon could escalate the Gaza conflict into a wider regional war.
