Oil prices surge as world anticipates Tehran’s response to Israeli strikes on Iran

The price of oil rose on Friday in anticipation of a Tehran response to Israel’s retaliatory strikes on Iran, the Telegraph reported. 

Prices have now reportedly risen by more than $2 a barrel (approximately NIS 7.50).

The price of Brent crude had risen to $74.64 by mid-Friday morning, according to the Telegraph, up from $72.31 on Thursday and $70.90 on Tuesday.

Ashley Kelty, research director at Panmure Liberum, told the source, “It appears that markets have been too quick to write down the war premium for the Middle East, and the rise on Thursday reflects this.

The role of Iraq

“While the impact of the attacks would be on the smaller scale, the potential to drag Iraq into the equation for the conflict would open up scope for future attacks which could damage Iraqi energy infrastructure, and disrupt supplies.”

Oil stocks such as Shell and BP rose more than 1% each as crude prices LCOc1, CLc1 climbed about 3% following reports that Iran was preparing a retaliatory strike on Israel from Iraq in the coming days, Reuters reported.

Analysts have also reportedly warned that the price may rise further in response to the US Presidential elections.

“Several international events have converged at the turn of the month that could see oil markets in for a bumpy ride in early November,” said Mukesh Sahdev, from Rystad Energy, according to the British paper.