Oil prices increased after Israel announced plans to retaliate against Iran’s significant attack over the weekend.
In early trading, Brent crude, the international standard, rose 0.6% approaching $91 a barrel, following statements from top Israeli military officials who declared the necessity of a response to Tehran’s launch of over 300 missiles.
Israel’s military chief of staff, Herzi Halevi, confirmed the intent to retaliate, though no specific details were provided.
Analysts forecast that oil prices may reach $100 per barrel by May
This rise in oil prices follows a recent six-week peak, despite calls for moderation from Foreign Secretary Lord Cameron and U.S. President Joe Biden.
Warren Patterson, ING’s head of commodities strategy, noted that the potential for an Israeli direct response suggests prolonged uncertainty and tension. He emphasized, “The more escalation we see, the more likely it is that oil supply from the region will be affected.”
