%Oil prices have jumped as much as 4% on media reports that Israel is planning to attack Iran, a development that could disrupt global energy supplies.
Brent crude oil, the international standard, has risen 4.34% over the last 24 hours to trade at $68.82 U.S. per barrel.
West Texas Intermediate (WTI) crude oil has gained just under 5% to trade at to $67.20 U.S. a barrel. Both Brent and WTI crude oil are now at their highest levels since early April of this year.
Oil prices also rose on reports that the U.S. is preparing to evacuate its embassy in Iraq after Iran’s Minister of Defense Aziz Nasirzadeh said Tehran would strike U.S. sites in the Middle East if nuclear talks fail and Israel attacks.
Ongoing tensions between Iran and the U.S. also mean that oil supplies are likely to remain curtailed by sanctions.
Also pushing oil prices higher is news of a trade deal between the U.S. and China, which could boost energy demand in the world’s two biggest economies.
U.S. President Donald Trump said Beijing will continue to supply America with rare earth minerals and that the U.S. will allow Chinese students at its colleges and universities.
Additionally, there are reports that U.S., crude inventories fell by 3.6 million barrels to 432.4 million barrels last week.
That was greater than the two-million-barrel drawdown expected among energy analysts, who say that oil demand in the U.S. appears to be growing.
The latest rise in crude oil prices is a sharp reversal following several months of slumping prices on demand concerns and as the OPEC+ cartel increases supply.
