Israel pledges tough retaliation, backed by US – OPEC+ committee to meet later in the day
Oil prices jumped more than 2% on Wednesday on fears of a widespread conflagration in the Middle East that would cause major problems in crude production after Iran’s major military strike against Israel.
On Tuesday, Tehran fired 200 missiles at Israel, saying the attack was over, but Israel vowed tough retaliation, possibly at oil facilities, with US backing.
The price of Brent climbed above $75 a barrel, while crude hovered above $71 a barrel.
“Iran accounts for about 4% of global oil production, but a major issue will be whether Saudi Arabia will increase production if Iranian supplies are cut off.”
The United Nations Security Council has scheduled a meeting on the Middle East for Wednesday, and the European Union has called for an immediate ceasefire. Iran’s oil output rose to a six-year high of 3.7 million barrels per day in August, ANZ analysts said.
An OPEC+ committee of ministers, which includes Russia, meets later on Wednesday to review the market situation, with no policy change expected. The group is set to increase output from December by 180,000 barrels per day.
Source: Skai
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