Oil prices rose during the Asian trading period on Friday as tensions in the Middle East returned, after Iranian news agencies reported several explosions across the country due to possible strikes by Israel.
The Iranian Fars news agency said on Friday that explosions were heard in Isfahan in central Iran and in parts of southern Syria and parts of Iraq, and US officials said that Israel responded to Iran, and that Washington was aware of this strike but did not participate in it.
Brent futures rose by almost 3% to USD 89.80 per barrel, while WTI futures jumped to USD 85.30 per barrel before falling back again, after reports that there was no damage as a result of the strikes and that the Israeli strike was limited.
The strike marks an escalation in the Middle East conflict, and is seen traders racing to restore the risk premium to oil prices.
The strikes come just a day after Iranian officials warned Israel of any retaliatory strikes, especially on Tehran's nuclear facilities, and Tehran said it might reconsider developing a nuclear weapon if Israel attacked the country's nuclear sites, which have so far only been used for peaceful purposes and energy generation.
But despite the gains made on Friday, oil prices are still on the way down during this week's trading.
