LONDON: Oil prices surged by about 4% on Tuesday following reports that Iran was preparing a missile attack on Israel, heightening concerns of broader conflict in the Middle East. Brent crude rose by $2.50, or 3.5%, to $74.20 a barrel, while US West Texas Intermediate (WTI) crude increased by $2.54, or 3.7%, to $70.71.
The rise came as Israel launched limited ground raids into Lebanon, and Hezbollah fired missiles at Tel Aviv. The US warned of possible Iranian involvement. Analysts warned that Iranian oil facilities could be targeted, potentially disrupting over a million barrels per day in production.
Despite earlier price declines due to supply concerns, escalating tensions have reversed the trend.
