Oil Jumps as Iran Calls for Oil Embargo on Israel

Crude futures prices rose after Iran called for an oil embargo on Israel due to its air strikes on Gaza.

Iranian Foreign Minister Hossein Amir Abdollahian called for “an immediate and complete embargo on the Zionist regime by Islamic countries, and an oil embargo on the regime,” according to the ministry’s statement on Telegram. He also urged Islamic countries to expel Israeli ambassadors.

Brent crude continued to rise, adding 3.5% to its value after the statements, to trade 3.1% higher at $92.67 a barrel.

Oil traders are increasingly concerned that Israel's war on Hamas will spread, potentially attracting Iran - a major oil exporter - and its allies such as Hezbollah in Lebanon.

However, Israel remains a small importer. While other Middle Eastern energy producers, including Saudi Arabia and the United Arab Emirates, have criticized Israel for its raids on Gaza, they have not spoken about halting sales to it or any of its allies.

Amir Abdullahian made these statements in Saudi Arabia during the Organization of Islamic Cooperation summit held to discuss the war between Israel and Hamas. These statements came at a time when US President Joe Biden arrived in Tel Aviv in an attempt to calm regional tensions and support Israel.

Iran has criticized Israel for its siege of Gaza and the killing of civilians in the Strip. Tehran is an arch enemy of Israel and supports Hamas. However, Tehran denied involvement in the October 7 attacks on Israel, which killed more than 1,400 people.

On the other hand, more than 3,000 Palestinians have been killed since Israel began its retaliatory raids on Gaza.