Oil Prices Surge Over $1 Amid Intensifying Middle East Tensions, According to Reuters

TOKYO (Reuters) – U.S. West Texas Intermediate (WTI) crude futures increased by $1.09, or 1.56%, reaching $70.92 per barrel at 2254 GMT, spurred by concerns over potential oil supply disruptions in the Middle East following Iran’s launch of ballistic missiles at Israel.

Futures trading is set to resume at 0000 GMT on Wednesday, while Brent crude settled at $73.56 a barrel after rising by $1.86, or 2.6%, on Tuesday.

Iran reportedly fired over 180 ballistic missiles at Israel as a response to Israeli actions against Hezbollah allies in Lebanon. Being a significant oil producer and a member of the Organization of the Petroleum Exporting Countries (OPEC), Iran’s involvement raises concerns about possible disruptions to oil supplies, according to a note from ANZ Research.

In August, Iran’s oil production reached a six-year high of 3.7 million barrels per day, as noted by ANZ.

Israeli Prime Minister Benjamin Netanyahu vowed that Iran would face consequences for its missile attack, while Tehran warned that any retaliatory action would lead to "vast destruction," which has intensified fears of an escalating conflict.

U.S. President Joe Biden reaffirmed full support for Israel, its long-standing ally, and the U.N. Security Council has scheduled a meeting to discuss the situation in the Middle East for Wednesday.