Oil prices rose $3 a barrel following reports that Israeli missiles had struck a site in Iran. The reports sparked concerns over disruption of oil supply owing to which benchmark contracts surged more than $3 to later eases slightly. Brent futures were up $2.63, or 3%, to $89.74 a barrel and US West Texas Intermediate contract climbed $2.56, or 3.1%, to $84.66 per barrel.
Warren Patterson, head of commodities strategy at ING, said in a note, as per news agency Reuters, “If these reports turn out to be true, fears over further escalation will only grow, as well as concerns that we are potentially moving closer towards a situation where oil supply risks lead to actual supply disruptions.”
