International oil prices rose over $75 a barrel after Israel launched strikes on Iran’s main nuclear facilities and ballistic missile factories.
US West Texas Intermediate (WTI) crude futures rose by more than 9.3 percent to $74.42 on Friday. WTI is on course to report its highest growth in over 5 years.
At the time of filing, Brent was up 8.38 percent or by $5.81 at $75.17 per barrel.
The sudden spike in benchmark oil contracts has come following Israel’s attack on Iran. There are fears that another conflict between these arch enemies will create a huge oil supply issue and push crude rates near $100 (or even higher) in the coming months.
It is highly likely that Tehran will respond strongly against Tel Aviv in the coming days. Iran’s response could further disrupt oil supply in the Middle East region and force other distributors to hike barrel rates passing through the Strait of Hormuz.
It bears mentioning that the Hormuz Strait is one of the world’s most important shipping routes as it carries 1/5th of the world’s oil.
