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Oil prices surged more than three percent in early Asian trade on Friday following unconfirmed reports of explosions in Iran, Syria and Iraq, sparking fears of an escalation of the Middle East crisis.
West Texas Intermediate jumped 3.66 percent to $85.76 and Brent rose 3.44 percent to $90.11.
The reports come after a missile attack on Israel by Iran last weekend that Israel’s army chief General Herzi Halevi warned would be met with a response.
Tehran unleashed more than 300 ballistic and cruise missiles and attack drones late Saturday, most of which were repelled by air defences.
The country’s leaders said the strike was a legitimate response to a deadly attack on an Iranian embassy building in Damascus that it blames on Tel Aviv
According to AFP, oil prices rallied and equities fell as explosions had been heard in Iran and Syria, fuelling fears of an escalation of the Middle East crisis after last weekend’s missile attack on Israel by Tehran.
The reports followed another batch of data indicating the US economy remained in rude health and compounded concerns that the Federal Reserve will hold off cutting interest rates this year or even hike them again.
Traders have been on edge since Saturday’s barrage by Iran, which Israel’s army chief General Herzi Halevi warned would be met with a response.
Leaders in Tehran said the strike was a legitimate response to a deadly attack on an Iranian embassy building in Damascus that it blames on Israel.
Iran’s Fars news agency reported “three explosions” were heard near Qahjavarestan, near Isfahan airport and the 8th Shekari army airbase, while space agency spokesman Hossein Dalirian said “several” drones had been “successfully shot down”.
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