Oil jumps as Iran steps up rhetoric against Israel
BNN Bloomberg
Oil leaped higher after Iran called for an embargo against Israel by Muslim countries, following a deadly explosion at a Gaza hospital that raised the risk of wider hostilities in the Middle East.
Brent futures rose three per cent to trade near US$93 a barrel. Iran's foreign minister called for a full and immediate boycott of Israel by Muslim countries, including an oil embargo on the country.
While Israel's oil imports are small in the context of global supply and little comes from the Middle East, the comments were significant in that they marked verbal escalation over the war between Israel and Hamas, which is considered a terrorist organization by the US and European Union.
It follows a blast at a hospital in Gaza City that killed hundreds. Leaders of Jordan, Egypt and the Palestinian Authority canceled a summit with US President Joe Biden, complicating his push to ensure the Israel-Hamas conflict doesn't widen across the region. Biden arrived in Israel early Wednesday.
