Oil prices gain 1% on Middle East supply fears
Oil prices rose about 1% on Wednesday after reports that Israel could be preparing to strike Iranian nuclear facilities raised fears of a supply disruption in the Middle East.
Brent futures rose 67 cents, or 1%, to $66.05 a barrel by 1310 GMT. U.S. West Texas Intermediate crude jumped 71 cents, or 1.1%, to $62.74.
U.S. intelligence suggests that Israel is preparing to strike Iranian nuclear facilities, CNN reported on Tuesday, citing multiple U.S. officials.
It was not clear whether Israeli leaders have made a final decision, CNN added, citing the officials.
"Such an escalation would not only put Iranian supply at risk, but also (put supply at risk) in large parts of the broader region," ING commodities strategists said.
Considering Iran exports more than 1.5 million barrels per day (bpd), fears of supply disruptions have helped to drive prices higher, said UBS analyst Giovanni Staunovo.
Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC) and an Israeli attack could upset flows from the country.
There are also concerns that Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz, through which Saudi Arabia, Kuwait, Iraq and the United Arab Emirates export crude oil and fuel.
Source: Reuters
