Oil prices on the New York Stock Exchange extended their gains from the previous session after Iran announced a retaliatory attack on Israel for the killing of the Hamas leader, traders said.
A barrel of West Texas Intermediate crude for delivery on IX is trading at USD 78.65 on the NYMEX in New York, up 0.95 percent.
Brent on ICE on X is trading at $81.54 a barrel, up 0.87% after jumping as much as 3.6% on Wednesday.
Iran vows retaliation
Iran's Supreme Leader, Ayatollah Ali Khamenei, has announced revenge on Israel for the killing of Hamas political leader Ismail Haniyeh, which took place in the Iranian capital, Tehran.
So far, Israel has not commented on the incident.
Israel “has prepared for itself a severe punishment” that Iran will mete out, Khamenei said in a statement posted on his website.
The Hamas leader was in the Iranian capital on the occasion of the inauguration of the country's new president, Masoud Peshehkian, which took place on Tuesday.
Ismail Haniyeh – assassinated political leader of Hamas.PAP/EPA
Read also: Israeli PM: We have dealt a crushing blow to Iran's allies. We are ready for any scenario
Markets fear Iran-Israel war
Oil markets are rightly concerned that the assassination of the Hamas leader could now draw Iran more directly into war with Israel, said Vivek Dhar, an analyst at Commonwealth Bank of India. Australia. – This could threaten Iran's oil supplies and related infrastructure – he emphasizes.
Meanwhile, U.S. officials continue to press for a ceasefire in Gaza, but say it is more difficult than ever after the death of the Hamas leader.
Analysts say the escalation of tensions in the Middle East comes at a time when OPEC+ alliance countries are due to assess the situation on fuel markets on Thursday.
For now, the group's Thursday session is expected to be routine, with no changes to OPEC+'s plans to restore the alliance's oil production starting in the fourth quarter of 2024.
Main image source: RachenStocker/Shutterstock