Oil price surges close to $80 a barrel on fear of Israeli retaliation

The price of oil hit its highest level in more than a month amid fears that Israel may conduct retaliatory strikes on Iranian oil facilities.
When asked whether America would support Israel striking Iranian oil production, President Biden said: “We’re in discussion of that,” before adding, “I think that would be a little … anyway” in a shortened comment.
Brent crude, the international benchmark, jumped by as much as 5 per cent to $77.54, the highest since September 2, and closing in on the $80-mark last reached at the end of August. West Texas Intermediate rose 5.02 per cent to $73.62.
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Shares in Shell and BP rose 1.7 per cent and 0.6 per cent, taking the total increase in their market values to £6.5 billion since the start of this week.
Iran exported 1.32 million barrels of oil a day last year, according to figures from Opec.
The yield on ten–year UK government bonds has risen above the 4 per cent mark since the start of the week, as the higher oil price raised concerns about inflationary pressures.
Oil prices have risen sharply this week amid fears of an escalation in the conflict between Israel and Hezbollah that could lead to a full-scale war in the Middle East.
Before the Iranian missile attacks on Israel, oil was trading near a two-week low after weak global demand and the outlook for increased supply outweighed concerns over the conflict. The Opec cartel has agreed to bring back about 180,000 barrels of output a day from December, after delaying the unwinding of its production cuts by two months.
On Wednesday both Israel and the United States warned Iran of “severe consequences” after Tehran’s armed forces fired almost 200 ballistic missiles at Israel, in what was the biggest direct attack on its regional adversary.
The price of gold, considered a safe haven asset, pushed $2.68 higher to $2,660.6 a troy ounce, hovering just below a record price of $2,685.