Oil Prices Soar Amidst Reports of Potential Iranian Retaliatory Strike on Israel
In a dramatic turn of events, oil prices surged in early Asian trade on Friday as tensions escalated following reports of Iran preparing a retaliatory strike on Israel from Iraqi territory in the coming days.
US West Texas Intermediate crude futures jumped by $1.24, or 1.8 percent, reaching $70.50 a barrel by 2229 GMT after a 0.95 percent increase in the previous session.
Brent crude, transitioning to the January contract, has yet to commence trading. The December contract, which expired on Thursday, closed 0.85 percent higher at $73.17.
Israeli intelligence sources revealed that Iran is gearing up to launch an attack on Israel from Iraqi soil, potentially before the US presidential election on Nov. 5, Axios reported on Thursday. The attack is rumored to involve a significant number of drones and ballistic missiles, with the intention of using pro-Iran militias in Iraq to circumvent direct strikes on Iranian soil.
Adding to the turmoil, there are speculations that OPEC+ may postpone December’s planned increase in oil production by at least a month. This decision comes amid concerns of weak oil demand and an influx of oil supply, as reported by four sources close to the matter to Reuters on Wednesday.