Oil jumps 25%, approaches $120 a barrel

Oil drilling rigs

Oil prices rose sharply as tensions continue to escalate in the Middle East, fuelling investor fears of unprecedented repercussions for global supplies.

Brent crude futures for May delivery jumped 25.5% or $23.23 to $115.92 a barrel at 06:43 am Makkah time, after touching $119.50 a barrel.

WTI crude oil futures for April delivery soared 27.10% or $24.60 to $115.50 a barrel, after reaching $119.48 a barrel.

This comes amid escalating military conflict in the Middle East, and following US media reports that the US is considering, in conjunction with Israel, sending special forces to take control of nuclear sites inside Iran.

Iranian authorities said over the weekend that US and Israeli airstrikes targeted four oil storage facilities and a logistics site used to transport petroleum products in and around Tehran.

Iranian media quoted Tehran Governor Mohammad Sadegh Motamadian as saying that fuel distribution in Tehran had been temporarily halted due to damage to the fuel supply network.

Meanwhile, US President Donald Trump described the sharp rise in oil prices as "a small price to pay" in exchange for getting rid of the threat of Iran's nuclear program.