BEIJING: Oil prices surged on Thursday after Israel said it attacked Iranian nuclear sites in Natanz and Arak overnight and as investors grappled with fears of a broader conflict in the Middle East that could disrupt crude supplies.
Brent crude futures rose 88 cents, or 1.15 percent, to $77.58 a barrel by 10:08 a.m. Saudi time, after gaining 0.3 percent in the previous session when high volatility saw prices fall as much as 2.7 percent.
US West Texas Intermediate crude for July rose $1.11, or 1.48 percent to $76.25 a barrel, after settling up 0.4 percent in the previous when it dropped as much as 2.4 percent.
The July contract expires on Friday and the more active August contract rose 92 cents, or 1.25 percent, to $74.42 a barrel.
There is still a “healthy risk premium baked into the price as traders await to see whether the next stage of the Israel-Iran conflict is a US strike or peace talks,” Tony Sycamore, market analyst at IG, said in a client note.
