Oil prices up with possibility of Iran preparing to attack Israel

By Zeynep Beyza Kilic

Oil prices continued to climb on Friday following news reports that Iran is preparing to strike Israel in a few days.

The international oil benchmark of Brent crude increased by 0.55% to $74.43 per barrel at 11.09 a.m. local time (0809 GMT), up from the previous session's close of $74.02.

The US benchmark West Texas Intermediate also rose by 0.64% to $70.74 per barrel, compared to $70.29 at the prior session's close.

Brent oil price increased by 2.2% and WTI rose by 2.1% during the day on Thursday. The concern that global supply could be disrupted due to the ongoing war in the Middle East, where most of the oil resources are located, continues to support upward price movement.

Also, news reports of Iran preparing a retaliation against Israel help prices increase.

Israel targeted military points in Iran on October 26 in response to Iran's missile attacks on October 1.

The Israeli press claimed that Iran was "preparing for a major retaliation from Iraq within a few days" in response to Tel Aviv's latest attack.

The news story, based on unnamed Israeli officials, claimed that Iran may retaliate with numerous unmanned aerial vehicles and ballistic missiles from Iraqi territory before the US Presidential elections on November 5.

According to the story, carrying out the retaliation through pro-Tehran groups in Iraq instead of Iranian territory could be an attempt to prevent a possible Israeli attack on strategic targets in Iran.

Israel also continues to attack Beirut and Gaza in the Middle East, raising market players' supply concerns.

Israeli Prime Minister Benjamin Netanyahu, during his speech at the graduation ceremony held for Israeli soldiers on Thursday, noted that Israel does not have a set date to end the attacks on Gaza.

He added that Israel would continue the attacks until they reached their "goals" in the region.

Concerns that the ongoing turmoil in the Red Sea, which is of critical importance for oil and fuel shipments and global maritime trade, will negatively affect oil supply aided the rise in oil prices.

Iran-backed Houthis in Yemen have been seizing commercial ships known to be affiliated with Israeli companies off the coast of Yemen since Oct. 31, 2023, as a reaction to Israel's attacks in Gaza.

Houthis also attacked some ships with unmanned aerial vehicles and missiles since the Israeli onslaught. In response to the hostile environment in the Red Sea, many shipping companies decided to avoid using that route.

The Houthis announced that they have targeted 202 ships linked to Israel, the US and the UK since November 2023.