Biden hints at possible Israeli strike on Iran

US President Joe Biden

US President Joe Biden hinted that Israel may attack Iran's oil infrastructure in response to missile attacks carried out by Tehran earlier this week.

Answering to a question about whether Washington backs Israel targeting Iranian oil facilities, Biden told reporters, “We’re discussing that. I think that would be a little … anyway”.

While the US President said that he does not expect an immediate Israeli retaliatory response, his remarks caused oil prices to surge sharply during Thursday's trading.

Brent crude prices jumped by nearly 5%, trading above $77.60 per barrel for some time, while US WTI crude rose by 5.5% to $74 before trimming some of their gains later.

The Middle East accounts for about a third of global oil supplies, and investors are concerned that the recent escalation could impact flows if energy facilities are attacked or supply routes are closed.