Crude prices soar on potential Iranian supply disruption

Fears in the market grew over the possibility that Israel might attack Iranian oil infrastructure, which could trigger retaliatory actions.

Oil prices rose by $3 per barrel on Thursday amid concerns that a Middle East conflict could disrupt global oil supplies.

North Sea Brent futures closed up $3.72 (5.03%) at $77.62 per barrel, while U.S. West Texas Intermediate (WTI) gained $3.61 (5.15%) to $73.71 per barrel.

Brent futures reached an intraday high of $77.89 per barrel, while WTI hit $73.97 per barrel, with both reaching one-month highs.

The Mexican Export Blend also ended Thursday with a gain of 5.01%, or $3.27, to sell at $68.54 per barrel.

Oil companies trading on the stock exchange had a mixed day. The world’s largest, Saudi Aramco, which is listed in Saudi Arabia, lost 0.55%. U.S. companies Exxon Mobil and Chevron gained 0.87% and 0.20%, respectively, while PetroChina, listed on the Shanghai Stock Exchange, advanced 7.64%, and British Shell gained 0.94%.

Market fears increased with the possibility that Israel could target Iran’s oil infrastructure, potentially sparking retaliatory actions.

U.S. President Joe Biden was asked on Thursday if he would support an Israeli strike on Iranian oil facilities. He responded, “We are discussing that,” adding, “Nothing is going to happen today.”

The Pentagon stated that it was in discussions with Israeli officials about a possible response to the Iranian missile attack, but declined to provide details.