Crude oil spikes nearly 3% on fears Iran preparing to directly attack Israel

U.S. crude oil prices rose nearly 3% on Tuesday, as the U.S. warned of a possible imminent attack by Iran against Israel.

Senior White House and Defense Department officials told NBC News that the U.S. “has indications that Iran is preparing to imminently launch a ballistic missile attack against Israel.”

“We are actively supporting defensive preparations to defend Israel against this attack. A direct military attack from Iran against Israel will carry severe consequences for Iran,” a senior White House official told NBC.

Here are Tuesday’s energy prices at 9:54 am ET:

• West Texas Intermediate November contract: $70.22 per barrel, up $2.01, or 2.95%.
• Brent December contract: $73.65 per barrel, up $1.95, or 2.72%.

Tensions in the Middle East have dramatically escalated over the past week, as Israel has pounded the Iran-backed militia Hezbollah with airstrikes, killing the group’s leader Hassan Nasrallah. The Netanyahu government dispatched ground forces into southern Lebanon on Tuesday.

Oil market and geopolitical analysts have repeatedly warned this year that an Israeli incursion into Lebanon could be the tripwire that leads to a regional war with Iran, increasing the risk of crude supply disruptions.