Oil jumps by more than $3/barrel on Mideast supply disruption fears

SINGAPORE (ICIS)–Oil prices surged by more than $3/barrel in Asian morning trade on Friday, with Brent crude crossing above $90/barrel before easing midday, amid heightened fears of supply disruption following unofficial reports of explosions in the Middle East.

($/barrel)	Contract	Low	High	Open	Last (at 03:17 GMT)	Previous Settlement	Change	High Change
Brent	June	86.85	90.75	87.04	89.42	87.11	2.31	3.64
WTI	May	82.47	86.28	82.62	84.76	82.73	2.03	3.55

“If these reports turn out to be true, fears over further escalation will only grow, as well as concerns that we are potentially moving closer towards a situation where oil supply risks lead to actual supply disruptions,” said Dutch banking and financial information services provider ING in a note on Friday.

Overnight, oil prices settled mixed following a sell-off early in the week as financial markets discounted fears of a war between Israel and Iran that could disrupt crude supplies.

On Friday, various media outlets in the Middle East reported explosions occurred in Iran, Syria, and Iraq.

Israel has launched a missile attack against a site in Iran, according to US broadcaster ABC News, while Iran’s semi-official Fars news agency has reported explosions in Isfahan province with state television reporting flights in several cities have been suspended.

Isfahan houses a significant military airbase, and the province is host to numerous Iranian nuclear facilities, among them the city of Natanz, which is central to Iran’s uranium enrichment efforts.

Iran’s official IRNA news agency said a series of explosions in Syria targeted military sites.

In Iraq, meanwhile, explosions were reported in the al-Imam area of Babel.

The reports have sparked worry that Israel has retaliated against Iran’s drone attacks last week.

Iran launched the strikes on 13 April in response to a suspected Israeli airstrike on Iran’s consulate in Syria at the start of the month.

Prior to the news of Friday’s attacks, Iran’s Foreign Minister Hossein Amir-Abdollahian issued a warning during a interview with US broadcaster CNN on Thursday that Iran would respond “immediately and with maximum intensity” to any Israeli aggression.