LONDON: Oil prices rose on Tuesday on rising disruptions from the Iran-Israel conflict, although major oil and gas infrastructure and flows have so far been spared from any substantial impact.
Brent crude futures climbed $1.23, or 1.7 percent, to $74.46 a barrel as of 12:23 p.m. Saudi time. US West Texas Intermediate crude was up $1.08, or 1.5 percent, at $72.85.
Both contracts rose more than 2 percent earlier in the trading session but also notched declines before bouncing back in volatile trading.
While no visible interruption was noticed in oil flows, Iran partially suspended gas production at the South Pars gas field that it shares with Qatar, after an Israeli strike caused a fire there on Saturday. Israel also hit the Shahran oil depot in Iran.
“The market is largely worried about disruption through (the Strait of) Hormuz but the risk of that is very low,” said Saxo Bank analyst Ole Hansen.
