Oil price rallied during Wednesday's trade, amid concerns over oil supply disruptions following Iran’s missile attack on Israel.
U.S. West Texas Intermediate (WTI) crude futures climbed $1.1, or 1.6%, to $70.93 per barrel by 12:45 pm AEST (2:45 am GMT). Brent crude futures lifted $1.02, or 1.4%, to $74.58 a barrel.
The missile strike involved more than 180 ballistic missiles fired by Iran at Israel, in retaliation for Israel’s military operations against Tehran’s Hezbollah allies in Lebanon.
Iran, a key member of the Organisation of the Petroleum Exporting Countries (OPEC), is a major oil producer, heightening concerns of potential disruptions to regional oil supplies.
Iran’s oil production reached a six-year high of 3.7 million barrels per day in August, further amplifying the impact of any potential supply interruptions.
In response to the attack, Israeli Prime Minister Benjamin Netanyahu vowed that Iran would face consequences for its actions, while Iran warned that any retaliation would lead to “vast destruction,” stoking fears of a broader regional conflict.
U.S. President Joe Biden expressed full support for Israel, while the U.N. Security Council has scheduled a meeting on the Middle East for Wednesday to address the escalating situation.
