2 weeks Ago
Oil prices surged this morning after Iran fired a barrage of missiles at Israel, inching the Middle East closer to a full-scale regional war traders fear could disrupt energy supplies to the global market. Brent crude, the international benchmark, rose as much as 5% to US$75.40 (NZ$120) a barrel in intraday trading today.
US benchmark West Texas Intermediate was also up 5% to US$71.84 a barrel. The rally came as traders and analysts warned of potential disruption to energy exports if the violence in the Middle East widened, saying energy infrastructure across a region that accounts for about a third of global oil production could be at risk.
“Iran sits astride the world’s most strategic energy region, oil- and gas-production facilities and transit choke points,” said Bob McNally, founder of Rapidan Energy Group and a former adviser to president George W Bush. “So, when Iran is involved in a shooting war with its neighbours, you have to price in some geopolitical disruption risk, especially when it comes to Israel,” he added..
