The price of oil rose by more than 3 % against the backdrop of escalating tensions in the Middle East, which could disrupt the production of crude oil in the region, Reuters informs.
Brent futures hit their highest in a month, rising $2.42, or 3.3%, to $75.98 a barrel. U.S. West Texas Intermediate (WTI) crude oil jumped $2.47, or 3.5%, to $72.30 a barrel.
The conflict in the Middle East escalated after Israel launched a ground operation in Lebanon. In response, Iran fired hundreds of missiles at Israel. The UN Security Council has scheduled a meeting on the Middle East, and the European Union has called for an immediate ceasefire.
Meanwhile, Iran's oil output rose to a six-year high of 3.7 million barrels per day in August. According to Capital Economics, an escalation of the conflict in the Middle East by Iran could draw the US into the war.
A group of OPEC+ ministers, which includes Russia, is meeting to review the market, with no change in policy expected. The group is set to increase production from December by 180,000 barrels per day.
Saudi Arabia's oil minister has warned that oil prices could fall to $50 a barrel if OPEC+ members do not stick to agreed production limits.