Oil prices surge amid threat of Iranian strike on Israel

Oil and gold prices have surged sharply amid reports of a potential missile strike by Iran on Israel.

December futures for Brent crude on the London ICE increased by 2.84 per cent, reaching $73.74 per barrel. Meanwhile, December gold futures on the Chicago Mercantile Exchange (CME) rose by 1.24 per cent, reaching $2,692.40 per ounce, Caliber.Az reports via Russian media. 

"US intelligence has information regarding Iran's preparation for a strike on Israel, which is expected to occur soon by using ballistic missiles," the US presidential administration officials said.

Tension in the Middle East escalated sharply over the past week following a series of Israeli airstrikes targeting positions of the Iran-backed group Hezbollah. 

"If Iran attacks and causes damage, the escalation cycle could quickly intensify, leading to sustained and even increasing geopolitical risks," president of Rapidan Energy Bob McNally said.

The US has indications that Iran is preparing to “imminently” launch a ballistic missile attack against Israel, a senior White House official said on October 1.  

“A direct military attack from Iran against Israel will carry severe consequences for Iran,” the official told reporters, adding that the US was actively supporting defensive preparations.  

The Israeli military’s spokesman said no aerial threats had been identified “at this moment”, but that its air defences were ready. There was no immediate response from Iran, but its supreme leader vowed that Israel's killing of Hassan Nasrallah, the leader of the allied Lebanese armed group Hezbollah, would be avenged.

By Naila Huseynova