Oil prices surged on April 19th due to unconfirmed reports of explosions in Iran, raising concerns about potential disruptions to Middle Eastern oil supplies.
Brent futures jumped $3.03, or 3.5%, to $90.14 a barrel by 0147 GMT, while US West Texas Intermediate crude rose $3.03, or 3.7%, to $85.76 per barrel.
The reports sparked worries that Israel might be responding to Iran's drone and missile attack of the previous weekend. Investors had been closely monitoring Israel's reaction to the attacks, with the geopolitical risk premium in oil prices unwinding earlier in the week due to the perception that any Israeli retaliation would be moderated by international pressure.
Meanwhile, Venezuela lost a key U.S. license allowing it to export oil to global markets, further impacting global crude oil supply. The U.S. also announced sanctions on Iran targeting its unmanned aerial vehicle program following the drone strike on Israel. However, these sanctions do not extend to Iran's oil industry.