Oil Surges on Biden Remarks About Possible Israeli Strike

Oil surged as markets braced for the possibility that Israel could strike Iran’s energy industry, the latest potential escalation of a conflict that began almost one year ago when Hamas attacked Israel. Global benchmark Brent crude climbed near $77 after US President Joe Biden indicated Israel was weighing an attack on Iran’s oil infrastructure as a response to Iran’s missile attack on Israel, itself a response to Israel’s killing of leaders of Hezbollah and Hamas and an Iranian general. When asked if he would support a new Israeli attack, Biden responded “we’re discussing that.” Israel meanwhile continued to strike Lebanon, killing nine people at a medical site in central Beirut, local authorities said, among other targets. Israel has said it’s targeting Hezbollah militants while Lebanese officials said the attacks have killed more than 1,300 people and displaced over a million. Tel Aviv also has warned civilians in southern Lebanon to evacuate as Israeli forces expand a ground invasion there.

US markets churned as traders weighed the prospect of an escalating conflict in the Middle East and awaited September unemployment numbers Friday. The US services sector last month expanded at the fastest pace since February 2023, driven by a flurry of orders, consumer spending and stronger business activity. Here’s your markets wrap.