Oil prices jump 3 percent amid reports of Israeli strikes on Iran

Oil prices surged by $3 a barrel on Friday following reports of Israeli missile strikes on a site in Iran, heightening concerns over potential disruptions to oil supplies in the Middle East.

Benchmark contracts initially spiked more than $3 before slightly retracing their gains.

By 0200 GMT, Brent crude futures had risen by $2.63, or three percent, reaching $89.74 per barrel. Meanwhile, the most active US West Texas Intermediate crude contract jumped by $2.56, or 3.1 percent, to $84.66 per barrel.

ABC News quoted an American official confirming Israeli missile strikes on a site in Iran.

The Iranian Fars News Agency reported an explosion near an airport in Isfahan, Iran, though the cause was not immediately clear. Isfahan province is home to several Iranian nuclear sites, including the Natanz facility, a critical component of Iran’s uranium enrichment program.

CNN also reported that several flights were diverted away from Iranian airspace in response to the escalating situation.