Brent crude oil tops $80 on expected Israeli attack on Iran

Brent crude rose nearly 3% on Monday, breaking the $80 threshold, as markets tried to cautiously price in a possible supply disruption if Israel attacks Iran’s oil and gas facilities.

As of 11:43 a.m. ET on Monday, Brent crude was trading 2.86% higher at $80.28, a daily gain of $2.23, while U.S. benchmark West Texas Intermediate (WTI) traded 3.04% higher at $76.64, a daily gain of $2.26.

In a note to customers published by MSN On Monday, ANZ Research predicted a “relatively small” supply disruption if Israel were to target Iran’s oil industry, further warning this by pointing out that they “see a direct attack on Iran’s oil facilities as the least likely response among Israel’s options.” “ looked at.

Earlier on Monday, oil prices were flat as traders awaited guidance from Israel.

The recent rise in oil prices began in earnest last week after President Joe Biden declared There were discussions about Israel’s retaliation plan, which could include attacks on oil and gas infrastructure. On Friday, Biden suggested that Israel shift its attack away from oil and gas.

Analysts are divided over the extent of potential disruption should Israel target Iran’s oil and gas infrastructure, but there are no clear indications of what might be targeted.

RBC Capital Markets has suggested that significant disruption could be felt if Israel were to hit the key artery for Iranian exports on Kharg Island and cripple shipping, as reported by CNBC. Likewise, Wood Mackenzie told CNBC on Monday that the worst-case scenario would be an Iranian attack on the Strait of Hormuz, which would handle a significant portion of the world’s oil exports.

By Charles Kennedy for Oilprice.com

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