Oil prices jump more than 3%, adding to last week’s surge, as Israel strikes Iran energy facilities

Crude oil futures jumped more than 3% Sunday after Israel struck two natural gas facilities in Iran, raising fears that the war will expand to energy infrastructure and disrupt supplies in the region.

U.S. crude oil rose $2.72, or 3.7%, to $75.67 per barrel. Global benchmark Brent was up $3.67, or 4.94%, at $77.90 per barrel.

Israeli unmanned aerial vehicles struck the South Pars gas field in southern Iran on Saturday, according to Iranian state media reports. The strikes hit two natural gas processing facilities, according to state media.

It is unclear how much damage was done to the facilities. South Pars is one of the largest natural gas fields in the world. Israel also hit a major oil depot near Tehran, sources told The Jerusalem Post.

Iranian missiles, meanwhile, damaged a major oil refinery in Haifa, according to The Times of Israel.

Oil prices closed more than 7% higher Friday, after Israel launched a wave of airstrikes against Iran’s nuclear and ballistic missile programs as well as its senior military leadership.

It was the biggest single-day move for the oil market since March 2022 after Russia launched its full-scale invasion of Ukraine. U.S. crude oil jumped 13% in total last week.

The war has entered its third day with little sign that Israel or Iran will back down, as they exchanged barrages of missile fire throughout the weekend.

Iran is considering shutting down the Strait of Hormuz, a senior commander said on Saturday.