Oil price rises as US says Israel has struck Iran

April 19 (BBC/GNA) – Oil and gold prices have jumped after US officials said an Israeli missile had struck Iran.

Brent crude, the international benchmark, rose to over $90 a barrel after reports emerged of an attack by Israel, before falling back when Iran sought to downplay the significance.

Gold briefly came close to a record high before settling below $2,400 an ounce.

There are concerns a worsening conflict in the Middle East could disrupt oil supplies.

Investors have been closely watching Israel’s reaction to Iran’s direct drone and missile attack last weekend.

Oil prices had jumped by as much as 3.5% initially. But Brent then fell back to $87 a barrel after Iranian state media claimed that there was “no damage” in Isfahan province where there had been reports of explosions.

Sharp and sustained rises in oil prices risk fuelling inflation. Countries are heavily reliant on the commodity, which is used to produce fuels such as petrol and diesel.

Fuel and energy prices have been a major driver behind the higher cost of living worldwide in the past couple of years.

GNA/Credit: BBC