Crude oil futures surged Sunday as Israel launched attacks on two natural gas sites in Iran, stoking fears of broader conflict and supply disruptions.

United States crude climbed $2.72 to $75.67 per barrel, while Brent rose $3.67 to $77.90.

Israeli drones reportedly struck the South Pars gas field in southern Iran on Saturday, targeting two natural gas processing facilities, according to Iranian state media.

The extent of the damage remains unclear. South Pars is among the world’s largest gas fields.

Meanwhile, Iranian missile strikes damaged a major oil refinery in Haifa, according to The Times of Israel.

This followed Israel’s wave of airstrikes targeting Iran’s nuclear sites, missile infrastructure, and top military officials.

Oil prices surged over 7% on Friday amid fears of escalating conflict and supply disruptions.

Friday’s surge marked the oil market’s biggest one-day gain since March 2022, when Russia invaded Ukraine. U.S. crude rose 13% over the past week, driven by escalating tensions between Israel and Iran and fears of broader disruptions to global energy supplies.

The Israel-Iran conflict entered its third day with continued missile exchanges and no sign of de-escalation.

A senior Iranian commander said Tehran is considering closing the Strait of Hormuz—a key chokepoint for about 20 per cent of global oil shipments.

Goldman Sachs warned that such a move could drive oil prices above $100 per barrel.

some analysts remain skeptical of its ability to do so effectively.

“I’ve heard assessments that it would be very difficult for the Iranians to close the Strait of Hormuz, given the presence of the U.S Fifth Fleet in Bahrain,” Helima Croft, global head of commodity strategy at RBC Capital Markets, told CNBC on Friday.

“But they could target tankers there, they could mine the straits,” Croft said.