Oil prices up following Israeli attack on Iran

Oil prices increased on Friday over supply concerns amid reports of an Israeli strike in the Iranian city of Isfahan early on Friday.

International benchmark Brent crude traded at $88 per barrel at 10.08 a.m. local time (0708 GMT), a 1% increase from the closing price of $87.11 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $83.73 per barrel at the same time, a 1.2% rise from the previous session that closed at $82.73 per barrel.

The rising tensions in the Middle East, home to the majority of the world’s oil reserves, sparked concerns of significant supply risks in support of higher oil prices.

According to US and Iranian media, Israel carried out a strike inside Iran in response to Iran’s attack on Israel with hundreds of kamikaze unmanned aerial vehicles and ballistic and cruise missiles on April 13.

Iran’s official state TV confirmed ‘massive explosions’ in the central Isfahan province but noted that no nuclear facilities were affected or targeted. The semi-official Mehr News Agency reported that three drones were destroyed in the skies above Isfahan province.

The Israeli military has not commented on the reported attack yet but said a security meeting is currently underway at Israel’s Defense Ministry in Tel Aviv.

Meanwhile, the US, a permanent member of the United Nations (UN) Security Council, vetoed the draft resolution authored by Algeria on Thursday, demanding Palestine’s full membership in the UN.

Palestine’s application for full UN membership amid a deadly Israeli offensive on Gaza was blocked with a vote of 12 in favor and two abstentions, including the UK and Switzerland.

A council resolution needs at least nine votes in favor and no vetoes by the five permanent members to pass.

The US began imposing sanctions once more on Venezuela, a member of the Organization of Petroleum Exporting Countries (OPEC), and revoked its authorization to export oil to international markets, which further shored up prices.

Businesses will be forced to either apply for individual licenses from the US Department of Treasury or cease doing business with Venezuela by the end of May. This move is expected to drive up costs by inciting supply concerns.

• West Texas Intermediate (WTI)