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(TJV NEWS) Crude oil prices surged past $87 per barrel fueled by reports of Israel bracing for a potential attack from Iran. This development, if it occurs, would mark the most significant escalation in tensions in the Middle East since the Israel-Hamas conflict in October last year, CNBC reported
The price of West Texas Intermediate (WTI) crude oil for May delivery rose by $2.32, reaching $87.34 per barrel. Similarly, June Brent futures increased by $2.13 to hit $91.86 per barrel. As a result, Exxon Mobil’s stock soared to a record intraday high of $123.74, driven by the bullish momentum in the energy sector.
According to sources familiar with the matter, Israel is anticipating a direct assault from Iran either on its southern or northern regions, possibly as early as Friday or Saturday. Although no final decision has been made by Iran’s leadership, discussions about plans for such a strike are reportedly underway.
Citing intelligence assessments, Bloomberg News reported that Iran or its allies might launch an attack using drones and missiles against Israel within the next 48 hours.
As a precautionary measure, the U.S. embassy in Jerusalem has restricted government employees and their families from traveling outside designated areas such as Tel Aviv, Jerusalem, and Be’er Sheva.
Iran’s Supreme Leader, Ayatollah Ali Khamenei, has pledged retaliation against Israel for a recent missile strike on an Iranian consulate in Damascus, Syria, which resulted in the deaths of seven Iranian military personnel.
Although oil prices initially surged following the consulate attack, they have since experienced slight fluctuations due to concerns over inflation data and U.S. crude inventories.
Israel has issued warnings to Iran, indicating its readiness to retaliate if attacked. Foreign Minister Israel Katz reiterated this stance, stating that Israel would respond with force if Iran initiated an attack from its territory.
Bob McNally, President of Rapidan Energy and a former senior energy official in the Bush administration, has suggested that Brent crude oil futures could skyrocket to $100 per barrel in the event of a direct Iranian attack on Israel. Moreover, if the situation escalates to disrupt the critical oil trade route through the Strait of Hormuz, prices could surge even higher, reaching $120 or $130 per barrel.
