Israel-Iran conflict shakes oil market, no chance for discounts in sight

Oil prices on the New York Stock Exchange are extending the gains from the previous session, and there is no chance of a decline in the raw material's quotations, as the Israel-Iran armed conflict is fueling concerns about oil supplies from the Middle East, brokers report.

A barrel of West Texas Intermediate crude for delivery on VII was priced at around $75.50 on NYMEX in New York, but markets are recovering from the gains and after 7:40 AM WTI is priced at around $71.70 per barrel. Brent on ICE on VIII was priced at as much as $74.98 per barrel, but prices are falling.

Israel launched massive attacks on Iran early Friday morning, saying they were targeting nuclear and military facilities.

Israeli Prime Minister Benjamin Netanyahu said that day that Iran has enough enriched uranium to build nine nuclear bombs.

Iran called the attack a "declaration of war" and responded with ballistic missile strikes on Israel.

Both sides announce further attacks.

World leaders call for de-escalation and Iran's return to negotiations over its nuclear program.

Oil markets are bracing for escalating tensions in the Middle East and possible disruptions to supplies from the region that produces about a third of the world's oil.

Oil pipelines and transmission lines between individual blocks of the Haifa oil refinery were damaged by Iranian missile attacks after Iran fired some 80 missiles at Israel overnight from Saturday to Sunday.

In turn, Israeli aircraft attacked Tehran on Saturday evening, hitting two fuel depots.

Israel attacked huge gas fields in the Persian Gulf - a powerful explosion and fire occurred at a gas processing plant connected to Iran's giant South Pars field.

"It was a really significant hit," said Richard Jonathan Bronze, an analyst at consulting firm Energy Aspects Ltd.

"It seems that we are in a cycle of escalation of the conflict and questions arise whether Israel intends to attack more of Iran's energy infrastructure," he added. (PAP Biznes)

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