During a visit, when asked if he would back Israel hitting Iran’s oil facilities, Biden replied, “We’re talking about that.”
Iran is the world’s seventh-largest oil producer, with the majority of its exports going to China.
The benchmark Brent crude oil price has increased by 10% to $77 a barrel since Iran’s missile attack on Israel on Monday, but this is still below earlier this year’s levels.
Oil prices have been held down so far this year by Saudi Arabia’s abundant supply and China’s weaker demand.
The response in the oil markets has been far more subdued than it was, say, in response to Russia’s invasion of Ukraine in 2022.
However, the markets are currently plagued by the growing unrest in the Middle East and the possibility of more action.
The Straits of Hormuz, which must be crossed by a fifth of LNG frozen gas and a third of oil tanker traffic, are of special concern in case of any escalation.
Since the start of Russia’s conflict with Ukraine, the world has relied more and more on LNG tankers carrying frozen gas.
