Crude oil prices jump 10% as Israel attacks Iran's nuclear facilities

Crude oil prices are back in action after pausing on Thursday as Middle East tensions escalate further. Israel launched preemptive strikes against Iran, which could lead to severe supply disruptions from the region. After the strikes, crude oil prices now trade over 10% higher on Friday morning. The Brent crude oil prices jumped to hit a 5-month high of $78 per barrel, and WTI crude oil prices jumped 10% to hit a high of $77.5 per barrel on Friday morning.

Israel attacked Iran’s nuclear facilities without the support of the US on Thursday overnight as the talks between the US and Iran falter. Israeli Prime Minister Benjamin Netanyahu had previously opposed any deal with Iran allowing it to enrich uranium, which is considered a step forward for developing nuclear weapons.

The US and Iran are scheduled to hold the sixth round of talks in Oman on June 15. However, with the fresh round of attacks, the talks are under the cloud of uncertainty, leading to further escalation in the region. Iran has vowed to take retaliatory actions against Israel after the recent attacks. Some media reports claim, the Israeli strike has killed more than a dozen top Iranian military the top generals and some nuclear scientists, aggravating the situation further in the conflict.

Experts believe oil prices are expected to remain elevated and could cross the mark of $100 per barrel if the crisis unfolds further. In addition, in a major escalation, Iran could also block the Strait of Hormuz, which accounts for 20-30% of the oil supply flows. Such disruption could further take the oil prices beyond $120 per barrel, potentially causing an energy crisis.

Despite the crisis taking violent turns, the 15th June talks between the US and Iran hold the hope for de-escalation in the crisis.