Oil prices could rise amid Mideast tensions

Price surge may hurt consumers, business

- REBECCA ELLIOTT

Oil prices, which surged after Israel attacked Iran early Friday, could stay high as long as tensions are elevated in the Middle East.

Higher oil prices may eventually lead to more expensive petrol and diesel, hurting consumers and businesses, and throwing a wrench into the Trump administration’s goal of lowering energy costs to keep inflation in check.

The benchmark US crude oil price settled at $72.98 a barrel Friday afternoon, up 7%. Prices briefly topped $77 a barrel shortly after the attack began.

Where oil prices go from here depends on how Iran responds to the Israeli attacks, analysts said. Prices could climb further if Iran attacks energy infrastructure or US bases in the region. But if it retaliates in a more limited fashion, oil prices are likely to fall in the coming weeks.

Iran launched missiles at Israel on Friday night, some of which struck parts of Tel Aviv.

Either way, US oil companies and big producers in the Middle East like Saudi Arabia are not likely to ramp up production quickly, said Robert McNally, an energy adviser under George W. Bush's administration who is now president of Rapidan Energy Group, aresearch firm in Washington.