Oil prices rise as Iran sends more than 100 ballistic missiles to Israel

Iran has fired more than 100 ballistic missiles into Israel, according to the latest reports, after the United States warned Israel this morning that an attack was imminent.

Israel had time to move its cabinet members and the Mossad to safety before the attack, and Israel is expected to issue a report shortly detailing what damage — if any — was done.

Another wave of missiles from Iran is expected.

Today’s missiles are different from the ones Iran sent to Israel in April. Today’s missiles are ballistic missiles that travel much faster, and multiple missiles have been launched simultaneously, making it difficult to intercept Israel’s defenses with 100% accuracy. Some rockets are believed to have been successful, although no casualties have been reported at this time.

The fear factor for the watching world is not that Iran’s missiles will cause catastrophic damage to Israel – it is Israel’s likely response to the missile barrage, which could be focused on economic damage. For Iran, this economic damage would come from Israel causing damage to Iran’s oil industry, which accounts for about half of Iran’s budget.

If Israel succeeds in disrupting Iran’s oil exports, which go mainly to China, or disrupting tanker traffic in the area, it could send global oil prices soaring.

Oil prices have already traded on rumors leading up to the attack on Israel. At 10:00 ET this morning, West Texas Intermediate (WTI) crude was trading at $70.16 a barrel, up 2.92% (+$1.99), while Brent crude was also making significant gains, trading at $73.61 per barrel, up 2.66% (+$1.91). ).

Prices are now even higher, with both benchmarks up more than 5% on the day, with Brent trading at $75.35 a barrel.

By Julianne Geiger for Oilprice.com

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