Oil prices are set for a weekly increase on Friday amid news reports that Israel is preparing a major attack on Iran, while the possibility of a new round of Gaza cease-fire negotiations limits further price surge.
The International benchmark Brent crude traded at $74.55 per barrel at 2.55 p.m. local time (1155 GMT) on Friday, up by around 2.3% relative to the closing price of $72.87 a barrel last week.
West Texas Intermediate (WTI), the American benchmark, traded at $70.62 a barrel at the same time on Friday, an increase of about 2.7% from last Friday’s session, which closed at $68.78 per barrel.
Tension between Israel and Iran soared after Iranian missile attack on Israel on October 1.
According to Israeli state television KAN, an Israeli official whose name was not disclosed revealed that Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant met to discuss when and how the retaliation will take place.
Also, according to media reports on Monday, the US intelligence obtained leaked classified documents about Israel’s attack plans against Iran.
The news came days after US President Joe Biden said last week that he knows how and when Israel will carry out its attack on Iran as Tehran warns it will respond ‘decisively.’
The possibility of Israel attacking Iran and concerns that the war could spread over a wider area and disrupt oil supply routes supported the upward price movement, feeding the supply concerns amid market players.
Oil prices also jumped during the week after Israeli army claimed that it killed the head of Hezbollah’s Executive Council in an airstrike on southern Beirut earlier this month.
On Tuesday, Israeli military confirmed that ‘Hisham Safieddine, Head of the Hezbollah Executive Council, and Ali Hussein Hazima, Commander of Hezbollah’s Intelligence Headquarters, were eliminated by the IDF (army), along with additional Hezbollah commanders,’ via a statement.
‘They were eliminated in a strike carried out approximately three weeks ago in the area of Dahieh,’ it added.
According to Israel’s public broadcaster KAN on Wednesday, ‘Israel is on the brink of launching an attack on Iran, according to unnamed Israeli officials. We are witnessing one of the most tense and complex moments in Israel’s history as preparations for a potential strike on Iran are underway in response to its rocket attack on Israel.’
Israeli media has speculated that the attack might target oil or nuclear facilities, raising concerns and warnings about the possibility of a broader regional conflict, though reports said Israel would only strike Iranian military targets.
Meanwhile, the possibility of a new round of Gaza cease-fire negotiations limit further price increases.
Market players are following the details of a new round of Gaza cease-fire talks announced by Qatar.
‘Two US and Israeli delegations will visit Doha to discuss ways to make a breakthrough in the Gaza cease-fire negotiations,’ Qatari Prime Minister Mohammed bin Abdelrahman Al Thani said on Thursday at a joint press conference with US Secretary of State Antony Blinken.
Israeli Prime Minister Benjamin Netanyahu approved the Israeli negotiating delegation that will travel to Qatar next Sunday to discuss the possibility of progressing Gaza negotiations.
