Check Out the Details: Reports of an Israeli Strike Cause Oil Prices to Soar Near USD 90 Per Barrel
Following rumors of Israeli missiles hitting a location in Iran, oil prices saw a considerable spike, jumping by USD 3 per barrel.
Investors were very concerned about the possible interruption to the oil supply, which caused benchmark contracts to spike higher and then decline a little. The US West Texas Intermediate contract increased $2.56, or 3.1%, to USD 84.66 a barrel, while Brent futures experienced a rise of USD 2.63, or 3%, to USD 89.74 a barrel, close to USD 90 per barrel.
In an interview with Reuters, Warren Patterson, director of commodities strategy at ING, emphasized the importance of the rumored strike and stressed that if it were verified, concerns about a further escalation would grow.
Patterson issued a warning, saying that these kinds of events can increase worries about real supply interruptions and exacerbate the current volatility in the oil markets. The delicate balance between geopolitical concerns and the stability of the oil market is highlighted by this attitude.
