Oil Prices Surge Amid Fears of Israeli Strike on Iran’s Nuclear Facilities

Crude oil prices surged on Wednesday following fresh U.S. intelligence reports suggesting that Israel may be preparing to strike Iranian nuclear facilities, a move that could derail ongoing diplomatic efforts between Washington and Tehran and spark a broader conflict in the Middle East.

According to CNN, U.S. intelligence indicates serious Israeli military preparations, including air force exercises and ammunition movement. This has fueled fears of war in a region already strained by previous conflicts and proxy tensions.

As tensions mounted, Brent crude rose to $66.37 per barrel, while West Texas Intermediate (WTI) climbed to $62.56, despite typically bearish signals like increased U.S. oil inventories and Kazakhstan’s production surge.

One U.S. official stated, “The chance of an Israeli strike has significantly increased,” citing Israel’s dissatisfaction with U.S.-Iran nuclear talks, which have stalled over uranium enrichment issues. Iran insists on its right to enrich under the NPT, while the U.S. deems even minimal enrichment unacceptable.

While no final decision has been made, analysts say Israel may act unilaterally if a “bad deal” emerges. However, Israeli military capabilities alone may not suffice to completely neutralize Iran’s nuclear program without U.S. support.

With Iran weakened militarily and economically, Israel may view this as a “window of opportunity.” But any misstep could spiral into a full-blown regional conflict, further destabilizing global oil markets.