Oil rises on news of attacks

Oil prices rose more than 3 percent after unconfirmed reports of explosions near the Iranian city of Isfahan. Oil prices jumped after U.S. officials said Israel had struck targets in Iran and Brent rebounded on concerns about the potential for a broader regional conflict that could jeopardize crude supplies. The global benchmark Brent rose 3.3 percent to $89.99 a barrel, while U.S. crude rose 3.5 percent to $85.62 a barrel. Prices in benchmark contracts eased slightly after rising more than $3 a barrel. The country’s semi-official Fars news agency reported that explosions were heard near Isfahan airport but stressed that the cause was unknown. Israel launched a missile attack on Iran, according to two U.S. officials. Investors are bracing for Israel’s response to Iran’s missile and drone strikes last weekend, and the rhetoric between the two has escalated as Tehran warned against attacking its nuclear facilities. The Middle East accounts for about a third of global crude supply. Safe-haven assets have also risen as tensions have risen. Gold rose to a record high, while the U.S. dollar climbed to its highest level in months. Copper gained, while stocks fell. “The market is probably going to have to start pricing in an even bigger risk premium,” said Warren Patterson, head of commodity strategy at ING Groep NV in Singapore.