Oil Jumps on Possibility of Israeli Attack on Iran

Oil prices surged following reports of a potential Israeli attack on Iranian nuclear facilities, as revealed by US intelligence. The threat of an Israeli strike could disrupt ongoing US-Iran negotiations for a new nuclear deal, possibly leading to a wider conflict in the Middle East. There are conflicting opinions within the US government on the likelihood of Israel carrying out the attack, with the decision possibly hinging on the outcome of negotiations between Trump and Iran.

The price of crude oil saw a significant increase after news emerged that Israel was considering targeting Iranian nuclear sites. At present, Brent crude was trading at $66.37 per barrel, while West Texas Intermediate stood at $62.56 per barrel. Reports suggested that Israel was contemplating strikes on Iranian nuclear facilities, which could have serious repercussions on the US-Iran negotiations for a new nuclear agreement. The potential conflict could impact oil supply and result in higher benchmark prices.

While oil prices rose due to concerns about escalating tensions between Israel and Iran, other factors such as increased oil production in Kazakhstan and the American Petroleum Institute’s inventory report indicating a build of 2.5 million barrels contributed to bearish sentiment. Despite the uncertainty surrounding the likelihood of an Israeli strike, US officials believe the final decision may be influenced by Trump’s negotiations with Iran. The risk of an Israeli attack has heightened in recent months, with the possibility increasing if a US-Iran deal negotiated by Trump does not address all of Iran’s uranium capabilities.