Israeli Strikes Against Iran Spark Oil Prices
Oil futures prices jumped sharply in early Friday trading after reports of a series of explosions in the Iranian capital, Tehran, amid growing reports of an Israeli military escalation against Iran, fueling fears of wider unrest in the energy-rich Middle East.
According to the Iranian official Nour News Agency, successive explosions were heard in Tehran early Friday morning, with no immediate official confirmation of their source or the extent of the damage, according to Bloomberg News.
At the same time, the American website Axios reported that Israel launched airstrikes on targets inside Iran, in a move described as a major escalation in the ongoing conflict over Iran's nuclear program.
In response to the military strikes, West Texas Intermediate crude jumped 6.2%, before later extending its gains to as much as 11%, or $7.6, to $76.52 a barrel. Fears of a potential disruption to regional oil supplies mount, particularly given Iran's proximity to the Strait of Hormuz, one of the world's most important energy chokepoints.
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