Oil Explodes 4% Amid Talk of Israel Attacking Iranian Oil & Gas

Benchmark crude oil prices surged well over 4% on Thursday on fears of an Israeli strike that could target Iran’s oil and gas infrastructure, with Washington attempting to put the brakes on exploding oil prices with assurances that there will be no Israeli strike today.

At 10:47 a.m. ET on Thursday, Brent crude was trading up 3.83%, slightly tapering its upward trajectory of well over 4% just half an hour prior, sitting at $76.73. The U.S. benchmark crude, West Texas Intermediate (WTI), was trading up 4.25% at $73.08 per barrel.

Earlier on Thursday, the Biden administration said it did not believe Israeli strikes against Iran would happen today in response to a massive missile strike on Israel that was largely thwarted on Tuesday.

“First of all, we don’t ‘allow’ Israel, we advise Israel. And there is nothing going to happen today,” Biden told reporters at the White House on Thursday.

Crude oil prices have continued to rise in the aftermath of Iran’s Tuesday attack on Israel, which involved some 200 missiles. Following the missile barrage, Israeli ground troops have clashed with Hezbollah forces in southern Lebanon, with Israeli Prime Minister Benjamin Netanyahu vowing separate revenge on Iran. The latest round of escalation was sparked by the Israeli killing of Hezbollah chief Hassan Nasrallah and Hamas political leader Ismail Haniyeh.

Israeli officials said on Wednesday that Israel could target Iran’s strategic energy infrastructure, including oil and gas rigs or nuclear installations, would have the biggest economic impact, and send shockwaves through oil markets.