Brent crude futures rose $1.30, or 1.7 per cent, to $79.35 a barrel by 1201 GMT. U.S. West Texas Intermediate (WTI) crude futures jumped $1.40, or 1.9 per cent, to $75.78. WTI had earlier risen by more than $2.
Brent climbed by more than 8 per cent last week while WTI soared by 9.1 per cent on the possibility that Israel could strike Iranian oil infrastructure in response to an Iran's Oct. 1 missile attack on Israel.
The potential escalation of the conflict has countered mounting demand-side pressures, said Priyanka Sachdeva, analyst at Phillip Nova.
Rockets fired by Iran-backed Hezbollah hit Israel's third-largest city, Haifa, early on Monday. Israel, meanwhile, looked poised to expand ground incursions into southern Lebanon on the first anniversary of the Gaza war, which has spread conflict across the Middle East.
That spread has raised fears that the United States, Israel's superpower ally, and arch-foe Iran will be sucked into a wider war.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, are due to start raising production from December after cutting in recent years to support prices because of weak global demand.
OPEC+ has enough spare oil capacity to offset Israel knocking out Iranian supply, but it would struggle if Iran retaliates by attacking installations of neighbouring Gulf nations, analysts have said.
When the Middle East conflict began a year ago, Brent stood at $88.15, but prices are now about $10 lower.
Oil prices extend gains on fears of wider ME conflict
FE Team | Published: October 07, 2024 21:37:19
Oil prices extend gains on fears of wider ME conflict
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