Oil prices rise as Israel-Iran conflict heightens fears of supply disruptions

[TOKYO] Oil prices jumped in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, heightening fears that escalating battle could trigger a broader regional conflict and widely disrupt oil exports from the Middle East.

Brent crude futures rose US$2.37, or 3.2 per cent, to US$76.60 a barrel by 2207 GMT, while US West Texas Intermediate crude climbed US$2.39, or 3.3 per cent, to US$75.37. They surged more than US$4 earlier in the session.

Both benchmarks settled 7 per cent higher on Friday, having surged more than 13 per cent during the session to their highest levels since January.

The latest exchange of strikes between Israel and Iran resulted in civilian casualties and intensified fears of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes.

German Chancellor Friedrich Merz said he hoped a meeting of the Group of Seven leaders convening in Canada on Sunday would reach an agreement to help resolve the conflict and keep it from escalating.

Meanwhile, Iran has told mediators Qatar and Oman that it is not open to negotiating a ceasefire while it is under Israeli attack, an official briefed on the communications told Reuters on Sunday, as the two foes launched fresh attacks and raised fears of a wider conflict. REUTERS