After rising more than 13% to an intraday high of $78.50, the highest mark since January 27, Brent crude oil futures climbed $4.87, or 7.02%, to close at $74.23 a barrel.
Due to concerns about a greater disruption in Middle Eastern oil supplies brought on by the Israel-Iran conflict, crude oil prices surged more than 7% on Friday.
After rising more than 13% to an intraday high of $78.50, the highest mark since January 27, Brent crude oil futures climbed $4.87, or 7.02%, to close at $74.23 a barrel. The price of Brent oil increased 12.5% for the week.
At $72.98 a barrel, US West Texas Intermediate crude ended $4.94, or 7.26%, higher. WTI oil rose more than 14% throughout the day to $77.62, the highest level since January 21. A week ago, WTI increased 13% to its current level.
Since the Russian invasion of Ukraine in 2022, when oil prices surged, both indexes saw their biggest intraday movements.
Israel announced it has launched what it called a “sustained operation” to stop Tehran from producing nuclear weapons, targeting Iran’s nuclear facilities, ballistic missile factories, and important military leaders. Buildings in Tel Aviv were hit by Iranian missiles shortly after markets closed, and there were also reports of explosions in southern Israel.
According to Iran’s National Iranian Oil Refining and Distribution Company, facilities for oil storage and refining are still standing and functioning normally, according to Reuters.
Concerns About Supplies
Iran, a participant in the Organization of the Petroleum Exporting Countries (OPEC), produces over 3.3 million barrels of crude oil and gasoline per day (bpd) and exports more than 2 million bpd.
According to Reuters, analysts and OPEC observers calculate that the spare production capacity of OPEC and its allies, notably Russia, is about equivalent to Iran’s output and may help compensate for any possible supply disruptions.
The growing confrontation has also raised worries about possible interruptions to the Strait of Hormuz, which is a vital chokepoint for oil exports worldwide.
