Oil rates surge on Friday after Israel’s attack on Iran
Date
4/21/2024 2:38:20 AM
(MENAFN) On Friday, oil rates experienced an upward surge driven by supply concerns stemming from reports of an alleged Israeli strike in the Iranian city of Isfahan earlier that day. International benchmark brent crude saw a notable increase, trading at USD88 per barrel at 10:08 AM local time (0708 GMT), marking a 1 percent rise from the previous session's closing price of USD87.11 per barrel. Similarly, the American benchmark West Texas Intermediate (WTI) witnessed a 1.2 percent uptick, trading at USD83.73 per barrel at the same time, up from the previous session's close of USD82.73 per barrel.
Tensions in the Middle East, which houses a significant portion of the world's oil reserves, contributed to concerns about potential disruptions to oil supplies, thus supporting higher oil prices. Reports of an Israeli strike inside Iran in response to Iran's alleged attack on Israel with unmanned aerial vehicles and missiles on April 13 heightened apprehensions over regional stability and oil production.
While Iran's official state TV confirmed "massive explosions" in Isfahan province, emphasizing that no nuclear facilities were affected, the reported incident intensified geopolitical tensions in the region. The Israeli military has not officially commented on the reported attack but indicated that a security meeting is underway at Israel's Defense Ministry in Tel Aviv.
Meanwhile, the United States exercised its veto power as a permanent member of the United Nations Security Council, blocking a draft resolution put forth by Algeria on Thursday. The resolution sought Palestine's full membership in the UN, a move that comes amid a deadly Israeli offensive on Gaza. The outcome of the vote, with 12 nations in favor, two abstentions (including the UK and Switzerland), and the US veto, underscores the ongoing diplomatic complexities surrounding the Israeli-Palestinian conflict and the challenges of achieving consensus within the UN Security Council.
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