Oil Rises as Israel Hints at Attack on Iran’s Oil & Gas Infrastructure

Crude oil prices rose on continued geopolitical tensions following Iran’s 200-missile barrage on Israel. Since the late Tuesday attack, Israeli ground troops have clashed with Hezbollah in southern Lebanon, with Israeli Prime Minister Benjamin Netanyahu vowing revenge and sparking fears of a full-blown war. Seven Israeli troops were killed during fighting in southern Lebanon on Wednesday, the Israel Defense Forces said in a statement.

The latest round of escalation was sparked by the Israeli killing of Hezbollah chief Hassan Nasrallah and Hamas political leader Ismail Haniyeh. The Iranian missile attack was largely thwarted. Oil prices have responded with a fair amount of caution, despite rising over 2% on Wednesday morning. 

On Wednesday, October 2, at 16:07 a.m. ET, Brent crude was trading up 1.56%, at $74.71 per barrel, while West Texas Intermediate (WTI) was trading up 1.66% at $70.99, just making it past the $70 mark. 

However, oil prices could soar much higher if Israel makes good on its threat to target Iranian oil and gas infrastructure in retaliation. 

Israeli media citing officials in Tel Aviv on Wednesday said Israel could target Iran’s strategic energy infrastructure, including oil and gas rigs or nuclear installations, as they have in the past. Another primary target could be Iran’s air defense systems. Targeting Iran’s oil and gas infrastructure would have the biggest economic impact, and send shockwaves through oil markets. 

Source: oilprice.com