On June 13, oil prices increased by more than 7%, reaching the highest level in many months after Israel announced an attack on Iran, escalating tensions in the Middle East and raising concerns about disruption of oil supply.
Brent futures increased by 5.29 USD, equivalent to 7.63%, to 74.65 USD/barrel at 1:42 GMT on June 13 (8:42 am Hanoi) after reaching the highest level of the day at 75.32 USD, the highest level since April 2.
Meanwhile, US West Texas Intermediate crude oil prices rose 5.38 USD, equivalent to 7.91%, to 73.42 USD/barrel after reaching a high of 74.35 USD, the highest level since February 3.
Senior energy analyst Saul Kavonic said that Israel's attack on Iran has increased the risk fee.
The conflict will escalate to the point where Iran retaliates against oil infrastructure in the region before oil supplies are actually significantly affected, Kavonic said.
Accordingly, Iran could obstruct up to 20 million barrels of oil per day through attacks on infrastructure or limit the crossing of the Hormuz Strait in an extreme scenario.
Prime Minister Benjamin Netanyahu said that Israel's attacks on Iran are aimed at damaging the country's nuclear infrastructure, ballistic missile plants and many military capabilities.
Meanwhile, US Secretary of State Marco Rubio called Israel's attacks on Iran a "unilateral act", asserting Washington had no involvement.
Mr. Rubio also called on Iran not to target US interests or personnel in the region.
In other markets, stocks fell sharply in the early morning trading session in Asia, led by a sell-off of US futures contracts, while investors rushed to seek safe-haven assets such as gold and Swiss francs.
Market analyst Tony Sycamore said the alarming escalation was a blow to financial market risk sentiment.
