Oil prices climbed sharply following reports that Israel is preparing to target Iranian nuclear sites, raising concerns over regional stability and jeopardising ongoing nuclear negotiations led by Donald Trump.
Brent crude rose by 1.4%, reaching $66.24 a barrel, while West Texas Intermediate jumped as much as 3.5%.
The surge followed a CNN report citing multiple US intelligence officials, suggesting that Israeli leaders are actively considering military action against Iran—a move that could disrupt global oil supplies and inflame tensions in the Middle East.
With the region accounting for roughly one-third of the world’s crude oil supply, any escalation poses a significant threat to market stability. Talks between the US and Iran, which could lead to increased oil exports, now appear uncertain due to Israel’s reported plans.
Analysts Warren Patterson and Ewa Manthey from Dutch bank ING cautioned: “Such an escalation would not only put Iranian supply at risk, but also large parts of the broader region.”
The upward pressure on oil prices is likely to intensify inflation concerns in the UK.
