OIL PRICES SURGE OVER 4% AMID ESCALATING MIDDLE EAST TENSIONS

Crude oil prices saw a surge on Friday, escalating over 4%, fuelled by the conflict in the Middle East with Israel launching an attack on Iran. 

Brent crude, the global benchmark, soared above $90 a barrel in a sudden upward move.

Brent oil surged by 3.94% to $90.54 a barrel, while the US West Texas Intermediate (WTI) crude futures jumped by 4.06% to $86.09.

The surge in oil prices followed reports of Israeli missiles striking a site in Iran. Iran's Fars news agency reported explosions at an airport in the Iranian city of Isafahan.

Throughout this year, crude oil prices have been on the rise, seeing a rise in escalating tensions in the Middle East and OPEC supply cuts, which have tightened the market.

Investors have closely monitored Israel's response following the April 13 Iranian drone attacks on Israel. The geopolitical risk premium in oil prices had been easing earlier in the week, as there was a perception that any Israeli retaliation to Iran's attack would be tempered by international pressure.

In terms of global crude oil supply, Venezuela faced a setback as it lost a crucial US licence permitting the OPEC member to export oil worldwide. The US imposed sanctions on Iran, another OPEC member, targeting its unmanned aerial vehicle following Iran's drone strike on Israel last weekend.

However, these sanctions on Iran exclude its oil industry.

Iran reportedly deployed air defence systems early Friday morning following reports of explosions near a major airbase in Isfahan, as per the state-run IRNA news agency.

The situation regarding whether Iran was under attack remained unclear. However, tensions remained high after Iran's unprecedented missile-and-drone assault on Israel. The Israeli military refrained from an immediate comment on the matter.

These missile launches by Iran occurred after an offensive on targets around Israel the previous Saturday, as reported by Israeli military authorities. The attack involved the launch of over 300 unmanned drones and missiles by Iran.

2024-04-19T05:36:15Z dg43tfdfdgfd