Oil prices rose on Tuesday as the Iran-Israel conflict escalated, though major oil and gas infrastructure and flows have so far been spared from substantial impact.
Brent crude futures gained $1.49, or 2.03%, to $74.72 a barrel by 13:15 GMT. U.S. West Texas Intermediate crude was up $1.28, or nearly 1.78%, at $73.05.
Energy stocks surged late last week as the market priced in possible disruption from the conflict between Israel and Iran.
While there was no noticeable interruption to oil flows, Iran partially suspended gas production at the South Pars field that it shares with Qatar after an Israeli strike started a fire there on Saturday.
Israel also hit the Shahran oil depot in Iran.
“The market is largely worried about disruption through (the Strait of) Hormuz, but the risk of that is very low,” said Saxo Bank analyst Ole Hansen, as quoted by Reuters.
Source:https://energynewsafrica.com
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