Oil prices climbed on Monday morning trade in Asia after Iran fired missiles at Israel for the first time since a fragile ceasefire was agreed between the countries and the US in April.
The price of the global benchmark Brent jumped by 2.6% to $95.50 (£71.60) a barrel, while US-traded crude rose by 2.5% to $92.75.
Iran’s Islamic Revolutionary Guard Corps (IRGC) warned that the attacks are the start of “a full week” of strikes.
US President Donald Trump has reportedly told news outlet Axios that he will urge Israel “not to retaliate”, despite the country’s military saying it will “strike the enemy” as soon as the order is given.
“I am going to call Bibi right now and tell him not to retaliate,” Trump told Axios, referring to Israeli Prime Minister Benjamin Netanyahu.
“We are very close to a final deal with Iran. It is going to be a good deal. I don’t want it to blow up because of what is happening now,” the president is quoted as saying.
A ceasefire agreement has been in force since 17 April and has been violated repeatedly by both Israel and Iran.
Oil prices have surged since US and Israel launched strikes on Iran on 28 February and have continued to make huge swings throughout the subsequent ceasefire.
Prices have hovered around the $95 mark in the past week as traders weigh the conflict’s long-term impact on global energy flows.
The war has disrupted the flow of oil and gas shipments from the Gulf after Iran threatened to strike vessels that try to cross the critical Strait of Hormuz trade route in retaliation for the US-Israeli attacks.
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