Oil prices increase as Israel plans to attack Iran

Oil prices climbed early on Monday in the global commodities market over report that Israel plans major attack on Iran.

The geopolitical tensions in the Middle East has brought Iran into play with latest missile slam on Israel earlier in October.

Due to US government interest in energy, Israel has allayed fear of potential attack on Iranian oil facility, aiming at the country military infrastructure instead.

Brent crude climbed to $73.13 per barrel while the US benchmark West Texas Intermediate also rose by 0.5% to $69.09 per barrel.

According to Israeli state television KAN, an Israeli official whose name was not disclosed revealed that Prime Minister, Benjamin Netanyahu and Defense Minister, Yoav Gallant will decide when and how the attack will take place in a security cabinet later in the day.

Also, the US obtained leaked classified documents about Israel’s retaliation plans against Iran.

US President, Joe Biden, said Friday that he knows how and when Israel will carry out its attack on Iran as Tehran warns it will respond ‘decisively.’

According to Organization of Petroleum Exporting Countries’ (OPEC) monthly report, Iran increased its oil production by 21,000 barrels per day to 3.31 million barrels, which was the highest increase amid OPEC members in September.

The possibility of Israel attacking the country supported the upward price movement, feeding the supply concerns amid market players. In addition, analysts expect the contraction in the real estate sector and housing market in China, the world’s biggest oil importer, to lessen.

China announced a 25 basis point reduction for 1 and 5-year loan interest rates, which serve as the benchmark interest for corporate loans and real estate loans.

The interest rate decision aims to revive the real estate and credit markets against the contraction in the real estate sector and to ease the burden on individuals and businesses.

The decision is expected to increase optimism regarding future incentive measures in the country and support the recovery of oil demand in China.