Oil prices jump 3% amid warning of attack on Israel

U.S. crude oil prices rose about 3% on Tuesday after the United States warned of a possible imminent attack by Iran on Israel.

West Texas Intermediate crude futures for November delivery rose $2.01, or 2.95%, to $70.22 a barrel, while Brent crude futures for December delivery rose $1.95, or 2.82%, to $73.72 a barrel.

Senior White House and Defense Department officials told NBC News that the United States “has indications that Iran is preparing to launch an imminent ballistic missile attack on Israel.”

A U.S. official told Reuters on Tuesday that a potential Iranian attack could be as large or larger than the one that occurred in April, but that assessment is based on preliminary indications and is difficult to verify.

OPEC+, which includes OPEC members and allies such as Russia, is set to raise production by 180,000 barrels per day in December.

Oil markets have been under pressure from weaker-than-expected demand growth this year, particularly in China, the world’s biggest importer of crude.

Demand concerns were reinforced on Monday after data showed manufacturing activity in the world’s second-largest economy contracted for a fifth straight month in September.

Brent crude futures ended September down 9%, their third monthly decline and the biggest monthly drop since November 2022. They plunged 17% in the third quarter, their biggest quarterly loss in a year.

WTI crude fell 7% last month and tumbled 16% in the third quarter.