Oil prices rose in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, raising concerns that the escalating fighting could trigger a wider regional conflict and disrupt oil exports from the Middle East.
Brent crude futures rose $1.70, or 2.3%, to $75.93 a barrel by 2253 GMT, while U.S. West Texas Intermediate crude rose $1.62, or 2.2%, to $74.60. Oil prices had jumped more than $4 earlier in the session.
Both benchmarks closed 7% higher on Friday, after jumping more than 13% during the session to their highest since January.
The latest attacks between Israel and Iran have resulted in civilian casualties and raised fears of a wider regional conflict, with both militaries urging civilians on opposing sides to take precautions against further attacks.
The latest developments have raised concerns about disruptions in the Strait of Hormuz, a vital shipping lane.
About a fifth of the world's total oil consumption passes through the strait, or about 18 to 19 million barrels per day (bpd) of oil, condensate and fuel.
U.S. President Donald Trump said on Sunday he hoped Israel and Iran could broker a ceasefire, but said sometimes countries have to fight first. Trump said the U.S. would continue to support Israel but declined to say whether he had asked the U.S. ally to halt its attacks on Iran.
German Chancellor Friedrich Merz said he hoped a meeting of Group of Seven leaders meeting in Canada on Sunday would reach a deal to help resolve the conflict and prevent it from escalating. Meanwhile, Iran has told mediators Qatar and Oman that it is not open to negotiating a ceasefire while under Israeli attack, an official briefed on the communications told Reuters on Sunday, as the two foes launched fresh attacks and raised fears of a wider conflict.
Iran, a member of the Organization of the Petroleum Exporting Countries, currently produces about 3.3 million barrels of oil per day, and exports more than 2 million barrels of oil and fuel per day.
The spare capacity of OPEC and its allies, including Russia, to pump more oil to offset any disruptions is roughly equal to Iran's output, analysts and OPEC watchers say. (alg)
Source: Reuters
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