Oil prices rose around 1% a barrel on Friday as investors priced in fears of an escalation of conflict in the Middle East which could disrupt oil supplies, after reports that the U.S military had struck Iranian targets in Syria.
Brent crude futures for December rose 93 cents or roughly 1.1%, to $88.86 a barrel by 1254 GMT. The U.S. West Texas Intermediate contract for December climbed 91 cents, also about 1.1%, to $84.12 a barrel. Both benchmarks were up by more than $2 a barrel earlier in the session.
Two U.S. fighter jets struck weapons and ammunition facilities in Syria on Friday in retaliation for attacks on U.S. forces by Iranian-backed militia since the Gaza war erupted.
Iranian Foreign Minister Hossein Amirabdollahian said at the United Nations on Thursday that if Israel’s offensive against Hamas did not stop, the United States will “not be spared from this fire”.
Separately, projectiles hit two Egyptian Red Sea towns on Friday injuring several people, sources and officials said, showing the risk of regional spillover from the conflict.
Meanwhile, Israeli forces carried out their biggest Gaza ground attack in their 20-day war with Hamas overnight, after Prime Minister Benjamin Netanyahu said Israeli troops were still preparing for a full ground invasion.