Global crude oil prices surged more than 3% following reports that Israeli missiles had struck a site in Iran, raising concerns about potential disruptions to Middle East oil supplies, reported Reuters.

Brent futures saw an increase of $2.63, reaching $89.74 a barrel, while the US West Texas Intermediate contract rose by $2.56 to $84.66 per barrel.

A US official was cited by ABC News as saying that Israel has launched a missile strike in Iran, escalating tensions in the region.

CNN also confirmed that Israel had carried out a military strike inside Iran, with the US being notified in advance of the intended action.

However, the US did not endorse the strike.

Iran’s air defence systems were activated after three explosions near a major military airbase in Isfahan, according to state media.

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An Iranian official told Reuters that the sounds heard in Isfahan were due to the activation of Iran’s air defence systems and clarified that no missile attack had occurred against Iran.

The recent developments come on the heels of Iran’s retaliatory strike last weekend, involving hundreds of drones and missiles, following a suspected Israeli attack on its embassy compound in Syria.

The majority of these strikes were intercepted, resulting in minimal damage and casualties.

Recently, the IMF warned that Middle East tensions could result in higher oil prices, an increase in inflation, and significantly impact financial markets’ positive outlook.