U.S. crude oil prices jumped over 3%, closing above $77 per barrel, as markets brace for a potential Israeli strike on Iran amid escalating geopolitical tensions.
The market’s concerns stem from fears of potential retaliation after Tehran's ballistic missile attacks, which could significantly impact global energy supplies.
West Texas Intermediate (WTI) crude, the U.S. benchmark, rose $2.76, or 3.71%, to settle at $77.14 per barrel. Brent crude, the global benchmark, closed at $80.93 per barrel, up $2.88, or 3.69%. Both benchmarks experienced their largest weekly gains since early 2023, with WTI advancing 9.09% last week and Brent climbing 8.43%.
President Joe Biden urged Israel last Friday to refrain from attacking Iran’s oil infrastructure, following a 5% price spike earlier in the week after Biden hinted that the U.S. was discussing such a strike with Israel. However, Biden also expressed opposition to Israeli strikes on Iran’s nuclear facilities.
The ongoing conflict between Israel and Hamas has now lasted a year and shows no signs of resolution. The war, which has extended into battles with Hezbollah in Lebanon and strikes against Houthi militants in Yemen, has yet to disrupt global crude supplies but continues to pose increasing risks as it drags on.