oil

Global oil prices surged higher Friday, testing the $90 per barrel mark, following rising military and political tensions in Israel’s war with Hamas and a new round of sanctions on the sale of Russian crude.

Iran’s foreign minister, Hossein Amirabdollahian told reporters in Beirut late Thursday that an extended blockade of Gaza, as well as attacks on civilians by the Israeli Defense Force, could possibly compel involvement from Tehran. Amirabdollahian also met with Hezbollah leader Hassan Nasrallah Friday in the Lebanese captial.

“The continuation of the war crimes against Palestine and Gaza will definitely be met with reactions in other axes in the region,” said Amirabdollahian.

The comments, alongside a move by the Biden administration to impose fresh sanctions on tanker operators moving Russian crude that is priced above the $60 cap put in place last year following Moscow’s invasion of Ukraine, added to concerns for supply disruptions in the region heading into a potentially volatile weekend.

Hamas, which launched the deadly attacks on Israel from Gaza last week, has called for a ‘day of rage’ protests from the Muslim world Friday, while Israel has set a 24-hour deadline for the evacuation of Gaza City in preparation for a ground assault on the territory’s capital. 

Brent crude futures for December delivery, the global pricing benchmark, were last marked $3.35 higher on the session at $89.35 per barrel.

WTI futures for November, which are tightly-linked to U.S. gasoline prices, were marked $3.40 higher at $86.31 per barrel.

On Wall Street, Exxon Mobil  (XOM) – Get Free Report shares were marked 1.7% higher in pre-market trading to indicate an opening bell price of $108.29 each, while Chevron  (CVX) – Get Free Report gained 1.4% to $163.40 each.

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