Oil prices rise amid reports of potential Israeli strike on Iran nuclear sites

Oil prices rose on Tuesday as geopolitical tensions flared following U.S. intelligence reports suggesting Israel is preparing for a possible strike on Iranian nuclear facilities, CNN reported.

Brent crude futures climbed 1.65% to $66.46 per barrel on the ICE exchange, surpassing the $66 mark. U.S. crude rose as much as 3.5% before paring some of its gains.

Prices have been volatile since last week due to uncertainty surrounding U.S.-Iran nuclear negotiations, which could bring additional Iranian oil to the market by year-end. A potential Israeli strike could derail the talks and raise tensions in the Middle East, a region that supplies roughly one-third of global oil.

“This report is the clearest signal yet of how high the stakes are in U.S.-Iran talks and how far Israel might go if Iran holds on to its nuclear ambitions,” said Robert Rennie, head of commodity and carbon research at Westpac. “Until we see results from diplomacy, markets will continue to price in a risk premium.”

N.Tebrizli