CALGARY – Global oil prices leaped Tuesday as escalating tensions in the Middle East sparked worries of energy market disruptions.
The price of a barrel of U.S. benchmark West Texas Intermediate rose close to five per cent to top US$71 as of midday as Israel’s military said Iran has fired missiles into the country.
A senior U.S. administration official earlier on Tuesday warned of “severe consequences” should a ballistic missile attack take place.
Oil prices have been weighed down this fall by lower-than-expected Chinese demand and uncertainty around OPEC’s (Organization of the Petroleum Exporting Countries) plans.
But at a major energy sector conference in Calgary on Tuesday, the potential for conflict in the Middle East to disrupt global economies hung over the event.
Sanna Marin, former Prime Minister of Finland, told delegates at the conference that there is more unrest to come in the Middle East and there is “no normal to go back to” when it comes to the geopolitical environment.
— With files from The Associated Press
This report by The Canadian Press was first published Oct. 1, 2024.