Iran’s oil refineries and fuel depots haven’t been damaged by the overnight Israeli strikes, the Iranian oil ministry said on Friday as the Islamic Republic vowed retaliation and began launching drones toward Israel.
“No damage was caused to the country’s refining facilities and oil depots, and currently the activities of these facilities and fuel supply are ongoing in all parts of the country without interruption,” Iran’s oil ministry said in a statement carried by Agence France-Presse (AFP).
Late on Thursday, Israel launched a series of coordinated airstrikes on Iran, targeting nuclear facilities in what it describes as a decisive move to prevent the Islamic Republic from becoming a nuclear power.
Israel’s operation ‘Rising Lion’ targeted dozens of Iranian nuclear sites, military commanders, and research scientists to prevent Iran from obtaining a nuclear bomb, which Israel considers a threat to its survival.
Oil prices spiked 13% after the attack, but gains eased to 5% early in European trade on Friday as the market began to digest the events.
Iran vowed retaliation.
It has already launched more than 100 drones toward Israel, which Israel is working to intercept, Israel Defense Forces (IDF) spokesman Brigadier General Effie Defin said on Friday.
The 13% oil price spike on Friday was the biggest intraday move for both Brent Crude and WTI Crude since the Russian invasion of Ukraine in 2022. Both benchmarks traded above $70 per barrel in early European trade on Friday.
Despite the fact that Israel’s strikes didn’t hit Iranian oil infrastructure, the oil market fears a potential disruption to oil supply from the Middle East in case of further escalation. The worst-case scenario would be a closure of the Strait of Hormuz, the most critical oil transit chokepoint in the world close to Iran. More than 20 million barrels of crude – around a fifth of global daily consumption – pass through the Strait every day.
By Tsvetana Paraskova for Oilprice.com
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