Oil jumps as Iran claims strikes, Israel issues stark warning

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesEnergyOil & GasOil jumps as Iran claims strikes, Israel issues stark warningBrent futures traded near US$97 a barrel at the highest since late JulyAuthor of the article:Grant Smith, Kanoko Matsuyama and Charles GorrivanEmployees of Basra Oil Company, work at the Nahr Bin Umar Oil and Gas Field on the outskirts of the southern Iraqi city of Basra on April 29, 2026. Photo by HUSSEIN FALEH / AFP via Getty ImagesOil rose as Iran claimed fresh retaliatory strikes and Israel indicated it is prepared to intensify its role in the war, adding to the risks imperiling energy flows from the region.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBrent futures traded near US$97 a barrel at the highest since late July, before paring some gains, after jumping more than eight per cent over the previous three sessions. West Texas Intermediate was above US$92.Iran’s military said on Thursday it targeted U.S. bases in Kuwait and the UAE with missiles and drones, the state-run Islamic Republic News Agency reported, citing an army statement. Kuwait said it responded to missile and drone threats; the UAE hasn’t announced any incidents.Israel indicated that it was prepared to return to the fighting if necessary. Defense Minister Israel Katz said that an Iranian attack on the Jewish state would free Israel from any existing restrictions in a response against the regime in Tehran.“We would strike all national, military and civilian infrastructure — including energy infrastructure — and return Iran deep into the Stone Age,” Katz warned.Earlier U.S. President Donald Trump, when asked how long a renewed U.S. bombing campaign could continue, said “I don’t think too long,” while adding that “we’re prepared to do another one.” Renewed U.S. strikes followed weeks of relative calm, with Iran hitting back by targeting American bases across the Middle East. The conflict’s worsening impact on fuel supplies was underscored by American diesel prices, which surged to the highest since mid-2022. In the U.S., the national average pump price for diesel climbed to US$5.783 a gallon on Wednesday, surpassing the previous wartime peak set in April, according to the American Automobile Association.The U.S. military escorted 40 vessels carrying 18 million barrels of oil through the Strait of Hormuz on Tuesday, CNN reported, citing two officials familiar with the matter. Energy Secretary Chris Wright said 17 million barrels of oil exited the waterway on Monday, with overall flows averaging about 8 million barrels a day.Still, neither the U.S. nor Iran has shown a willingness to come to the negotiating table since the collapse of an interim peace accord agreed in June. Crude prices have risen about 60 per cent this year, with refined products such as diesel rallying even harder due to the Middle East conflict and the Russia-Ukraine war.“It’s the sum of all fears,” said Arne Lohmann Rasmussen, chief analyst at Global Risk Management in Copenhagen. “The market is increasingly concerned about military confrontation, in a situation where the Strait of Hormuz remains closed for longer. The war could easily spread like in March to the whole Middle East.”Separately, U.S. crude inventories fell by almost 4.5 million barrels last week, the first decline since late July, according to Energy Information Administration figures. Stockpiles at the key storage hub at Cushing, Oklahoma, rose marginally to 22.5 million barrels.With assistance from Bingyan Wang and Lars PaulssonThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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