Oil was in sight of US$80 a barrel on Friday morning as fears of further escalations in the Middle East continued to buoy prices.
At US$77.51, benchmark Brent crude was up 3.5% from Thursday morning and by 8% since Monday.
Prices had not reacted too aggressively to news of Iran’s direct missile strike on Israel earlier in the week, as expectations of surplus supply ahead remained.
This was as markets continued to price in weak demand from China and growing supply from Saudi Arabia later in the year, in turn offsetting concerns related to the Middle East.
However, fresh fears surrounding a response to Iran’s strike by Israel on Thursday appeared to finally weigh on sentiment.
President Joe Biden had alluded to strikes by Israel against Iran’s oil industry.
When asked on Thursday if he would support strikes against oil facilities in the country, which is the world’s seventh largest oil producer, he replied: “We’re discussing that.”