Iran’s de facto blockade of the Strait of Hormuz, through which 20 percent of the world’s oil and gas normally flows, and multiple attacks on energy infrastructure in the Middle East have sent crude prices soaring.
A barrel of North Sea Brent crude was up 3.26 percent at $112.19 on Friday.
On Wall Street, stocks fell sharply after oil prices rose on fears that prolonged supply disruptions would lead to a global economic recession.
There were fresh explosions in Tehran on Friday and Israel accused Iran of attacking holy sites in Jerusalem after the attack left a crater near the Al-Aqsa Mosque, the Western Wall and the Church of the Holy Sepulcher in the Old City.
Saudi Arabia said it “intercepted and destroyed” more than 20 Iranian drones in the east of the kingdom early Saturday, while Israel said a new wave of missiles had been fired from Iran.
Meanwhile, Iranian attacks on energy infrastructure in the Gulf continued.
On Friday, drone strikes hit Kuwait’s giant Mina al-Ahmadi refinery, causing a fire that was later brought under control, a day after a direct attack on Qatar’s vital Ras Laffan natural gas facility.
In other developments, the Israeli military said it had launched a series of strikes targeting Iran-backed militant group Hezbollah on the Lebanese capital Beirut early Saturday, after calling on residents of several areas to evacuate.