Oil prices rise 1% on fears of escalating Middle East conflict
Middle East which could disrupt oil supplies, after reports that the U.S military had struck Iranian targets in Syria.
Brent crude futures for December rose 93 cents or roughly 1.1%, to $88.86 a barrel by 1254 GMT.
The U.S. West Texas Intermediate contract for December climbed 91 cents, also about 1.1%, to $84.12 a barrel.
Both benchmarks were up by more than $2 a barrel earlier in the session.
Two U.S.
fighter jets struck weapons and ammunition facilities in Syria on Friday in retaliation for attacks on U.S. forces by Iranian-backed militia since the Gaza war erupted.
Iranian Foreign Minister Hossein Amirabdollahian said at the United Nations on Thursday that if Israel's offensive against Hamas did not stop, the United States will «not be spared from this fire».
Separately, projectiles hit two Egyptian Red Sea towns on Friday injuring several people, sources and officials said, showing the risk of regional spillover from the conflict.
Meanwhile, Israeli forces carried out their biggest Gaza ground attack in their 20-day war with Hamas overnight, after Prime Minister Benjamin Netanyahu said Israeli troops were still preparing for a full ground invasion.
RED LINES
The developments have so far not directly impacted oil supplies, but raise fears that exports from major crude producer and Hamas-backer Iran could be disrupted, among other key producers in the Gulf.
"(It) remains incredibly difficult even for the most knowledgeable regional watchers to make high conviction calls about the trajectory of the current crisis, as the red lines that could bring more players onto the battlefield remain largely indiscernible," RBC Capital analyst Helima Croft said.
Goldman Sachs analysts said they retained their first-quarter
