Last week, oil prices on global markets surged by more than 8 percent as traders fear that the escalation of conflict in the Middle East could disrupt supply from that oil-rich region.
On the London market, the price of a barrel rose by 8.5 percent to $78.05, while on the American market, the price increased by 9.1 percent to $74.38.
The largest weekly price jump in over a year is primarily a result of the escalation of conflict in the Middle East, following Iran’s launch of a barrage of rockets at Israel on Tuesday in retaliation for Israel’s offensive against Tehran’s ally Hezbollah in Lebanon.
Israel has stated that it will respond to Iran, with Washington supporting Israel in this. However, U.S. President Joe Biden indicated that he does not support an attack on Iranian nuclear sites as a possible response.
Speculation in the market suggested that Israel might attack Iranian refineries or the main export terminal on Kharg Island to reduce Tehran’s revenue from derivative exports.
If attacked by Israel, Iran is likely to retaliate with strikes on Israeli energy and gas facilities, reported the Iranian news agency SNN on Friday.
On the same day, President Biden stated that if he were in the position of the Israelis, he would consider alternatives to targeting oil facilities.
Iran is a member of the Organization of the Petroleum Exporting Countries (OPEC) and produces about 3.2 million barrels per day, which accounts for approximately three percent of global production.
The response from Israel is still awaited.
