Oil Rallies on Report Iran Planning Israel Attack Via Proxies
Oil extended gains for a third session after a report that Iran could be planning to attack Israel from Iraqi territory in coming days, jolting the market’s attention back to Middle East hostilities.
West Texas Intermediate jumped as much as 2% on Friday morning to trade above $70 a barrel, following an Axios report that Iran was preparing a strike through militias it backs in Iraq, citing two Israeli sources it didn’t name. Brent closed higher near $73 in the previous session.
Oil tumbled at the start of the week after a limited Israeli attack on Iran in response to an Oct. 1 missile barrage, which led to a war premium unwinding and focus shifting to weak fundamentals. However, Standard Chartered Plc warned that the market had “relaxed too quickly.”
The oil market has a number of key events on the horizon that could impact prices, from the US election and a meeting of China’s top legislative body next week, to a looming decision from OPEC+ to start gradually reviving production from December.
WTI for December delivery advanced 2% to $70.61 a barrel at 7:25 a.m. in Singapore.
Brent for January settlement closed 0.9% higher at $72.81 a barrel on Thursday.
Source : Bloomberg
