Middle East tensions are driving oil market volatility

Iran’s missile attack on Israel has increased geopolitical risk in the Middle East, raising global oil prices on fears of supply disruptions.
US crude oil prices rose about 5% on Thursday, posting a third straight session of gains. Prices continued to rise on Friday and were on track for strong weekly gains. Brent crude futures were up 55 cents, or 0.7%, at $78.17 a barrel by 0831 GMT. U.S. West Texas Intermediate crude futures rose 50 cents, or 0.7%, to $74.21 a barrel. For the latest updates on the Israeli-Palestinian conflict, visit our dedicated page.
Iran fired nearly 200 ballistic missiles at Israel on Tuesday, marking a sharp escalation in their long-running conflict.
This comes in retaliation for Israeli airstrikes that targeted Hamas political leader Ismail Haniyeh, killed in an explosion in Tehran in July, and Hezbollah leader Hassan Nasrallah, as well as the deputy commander of Iran’s Revolutionary Guard, Abbas Nilforoushan, who were killed last week in the southern suburbs of Beirut. This is the second attack on Israel this year, after the launch of about 300 rockets and drones in April. Israel and the United States have vowed to retaliate over the attack, a sign of a growing conflict that could destabilize the region and affect global oil markets.
OPEC member Iran produces about 3.2 million barrels per day, or about 3% of global production. Israel’s military capabilities could pose a direct threat to Iran’s energy infrastructure.
Despite US sanctions, Iran’s oil exports have risen this year to nearly 1.7 million barrels per day, a multi-year high, with Chinese refiners the main buyers. China has said it does not recognize unilateral US sanctions.