Oil Prices Surge Over 4% Amid Fears of Israeli Strike on Iran

Benchmark crude oil prices surged by more than 4 percent on Thursday due to fears that Israel might strike Iran’s oil and gas infrastructure. In response, Washington tried to calm the situation, assuring that no Israeli strike would occur today to prevent further increases in oil prices.

As of 10:47 a.m. ET on Thursday, Brent crude had risen by 3.83 percent, slightly down from the over 4 percent increase seen just 30 minutes earlier, with prices standing at $76.73 per barrel. The U.S. benchmark, West Texas Intermediate (WTI), was up 4.25 percent, trading at $73.08 per barrel.

Earlier that day, the Biden administration indicated that it did not expect an Israeli strike on Iran in response to the large missile attack on Israel, which was largely thwarted on Tuesday.

“Firstly, we don’t ‘allow’ Israel; we advise them. And nothing is going to happen today,” President Biden told reporters at the White House on Thursday.

Crude oil prices have been steadily rising since Iran’s attack on Israel on Tuesday, which involved around 200 missiles. Following the missile assault, Israeli ground forces clashed with Hezbollah in southern Lebanon, with Prime Minister Benjamin Netanyahu vowing separate retaliation against Iran.

This escalation began after the Israeli assassination of Hezbollah leader Hassan Nasrallah and Hamas political figure Ismail Haniyeh.

On Wednesday, Israeli officials suggested that targeting Iran’s key energy infrastructure, including oil rigs, gas facilities, or nuclear sites, could have a major economic impact and send shockwaves through the global oil markets.