File photo of Israeli F-16 fighter jets performing over the beach in the Israeli coastal city of Tel Aviv on May 5, 2022.
Jack Guess | AFP | Getty Images
Crude oil futures rose on Friday on reports that Israel was preparing to launch a direct attack on Iran this weekend, which would be the most serious escalation of tensions in the Middle East since the war between Israel and Hamas began last October.
this West Texas Intermediate Oil The contract for May delivery hit a session high of $87.67, while June Brent crude futures rose to $92.18. Exxon Mobil The stock hit an all-time high of $123.74 intraday as rising oil prices boosted the energy sector.
U.S. crude ended the day up 64 cents, or 0.75%, at $85.66 a barrel, while the global benchmark ended at $90.45 a barrel, up 0.79%, or 71 cents.
Israel is preparing for a direct Iranian attack on southern or northern Israel as soon as Friday or Saturday. Informed sources told the Wall Street Journal. A person briefed by Iran’s leadership told the Wall Street Journal that while attack plans are being discussed, no final decision has been made.
People familiar with Western intelligence assessments told Bloomberg News Iran or its proxies may use drones and missiles to attack Israel as soon as the next 48 hours.
U.S. Embassy in Jerusalem on Thursday restricted government employees “Out of an abundance of caution,” they and their families are prohibited from personal travel outside Tel Aviv, Jerusalem and Beersheba until further notice.
Iran’s Supreme Leader Ayatollah Ali Khamenei has vowed to punish Israel for last week’s missile attack on the Islamic Republic’s diplomatic building in Damascus, Syria, which killed seven Iranian police officers.
Oil prices rose after that attack, but futures fell slightly this week as inflation data and U.S. crude inventories weighed on the market.
Israel has warned Iran that it will strike back against the Islamic Republic if Tehran attacks Israel.
“If Iran launches an attack from its territory, Israel will respond and launch an attack in Iran,” Foreign Minister Israel Katz said in a statement. Social Media PlatformX On Wednesday, tag Khamenei.
Bob McNally, president of Rapidan Energy and a former senior energy official in the Bush administration, said Brent crude futures could soar to $100 a barrel if Iran directly attacks Israel. McNally told CNBC that oil prices could surge to $120 or $130 a barrel if an escalation disrupts the Strait of Hormuz, a key oil trade route.
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