By Giulia Petroni
Oil futures gained more than $4 a barrel on Friday after Israel launched a wide-ranging attack against Iran's nuclear facilities and military leadership, stoking fears of regional conflict that could disrupt global energy flows.
In early European trade, Brent crude rose 5.5% to $73.18 a barrel, while the U.S. oil gauge West Texas Intermediate was up 5.5% to $71.76 a barrel. The benchmarks surged as much as 13% before pairing gains.
"The market's response to last night's attack has been very strong," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. "Prices have since pulled back slightly, but tensions are far from over."
Prime Minister Benjamin Netanyahu said the operation would continue for "as many days as it takes," and Iran's Supreme Leader Ayatollah Ali Khamenei warned Israel "should expect severe punishment" for the strikes.
The attack marks a significant escalation in regional tensions, raising the specter of a broader Middle East conflict that could severely disrupt both regional and global oil and gas supplies.
"This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium for any potential supply disruptions," said Warren Patterson, ING's head of commodity strategy.
Iran is a major oil producer and holds a strategic position on the northern side of the Strait of Hormuz, a crucial route through which about a third of global seaborne oil flows.
"What impact this would have on the oil market depends on whether downstream assets are affected or if midstream and upstream assets are targeted," Patterson said. "The latter would have more of an impact on the global market, putting as much as 1.7 million barrels a day of export supply at risk."
The strikes come just days before U.S. special envoy Steve Witkoff was due to meet his Iranian counterparts in Oman for a sixth round of nuclear talks. Secretary of State Marco Rubio said the U.S. wasn't involved in the strikes.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
June 13, 2025 03:36 ET (07:36 GMT)
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