Oil rises more than $1 on rising Middle East tensions By Reuters

TOKYO (Reuters) – U.S. West Texas Intermediate (WTI) crude futures were up $1.09, or 1.56 percent, at $70.92 a barrel by 2254 GMT on fears of supply disruptions oil in the Middle East after Iran launched ballistic missiles at Israel.

futures will resume trading at 0000 GMT on Wednesday. Brent gained $1.86, or 2.6%, on Tuesday to settle at $73.56 a barrel.

Iran fired more than 180 ballistic missiles at Israel on Tuesday, Israel said, in retaliation for Israel’s campaign against Tehran’s Hezbollah allies in Lebanon.

Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), is a major oil producer in the region.

“The direct involvement of OPEC member Iran raises the prospect of oil supply disruptions,” ANZ Research said in a note, referring to the conflict.

Iran’s oil output rose to a six-year high of 3.7 million barrels per day in August, ANZ added.

Israeli Prime Minister Benjamin Netanyahu vowed Iran would pay for its missile attack on Israel, while Tehran said any retaliation would be met with “vast destruction”, sparking fears of a wider war.

US President Joe Biden expressed full US support for Israel, its longtime ally, and the UN Security Council scheduled a Middle East meeting for Wednesday.