Oil surges 4% amid talk of Israeli attack on Iranian oil and gas

Benchmark crude oil prices rose well over 4 percent on Thursday on fears of an Israeli attack that could target Iran’s oil and gas infrastructure, as Washington tried to put the brakes on a surge in oil prices with assurances that no strike would take place Israeli today.

As of 10:47 a.m. ET Thursday, Brent crude was trading up 3.83%, paring its upward trajectory of well over 4% just half an hour earlier to settle at $76.73. The US benchmark crude oil, West Texas Intermediate (WTI), was trading up 4.25% at $73.08 per barrel.

Earlier Thursday, the Biden administration said it did not believe Israeli strikes against Iran would occur today in response to a massive missile attack on Israel that was largely thwarted on Tuesday.

“First, we don’t ‘allow’ Israel, we advise Israel. And nothing is going to happen today,” Biden told reporters at White House Thursday.

Crude oil prices continued to rise following Iran’s attack on Israel on Tuesday, which involved about 200 missiles. Following the missile barrage, Israeli ground troops clashed with Hezbollah forces in southern Lebanon, with Israeli Prime Minister Benjamin Netanyahu vowing separate revenge on Iran. The latest round of escalation was triggered by the Israeli killing of Hezbollah chief Hassan Nasrallah and Hamas political leader Ismail Haniyeh.

Israeli officials said Wednesday that Israel could target Iran’s strategic energy infrastructureincluding oil and gas rigs or nuclear facilities, would have the biggest economic impact and send shockwaves through oil markets.

By Charles Kennedy for Oilprice.com

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