#IsraelIranConflict

Oil’s geopolitical risk premium has climbed in the wake of Israeli airstrikes on Iran early on Friday, according to analysts at Texas Capital Securities.

In a note to clients, the strategists led by Derrick Whitfield added that the threat of a potential disruption to oil flows can provide a short-term lift to oil prices.

Writing in a separate note, analysts at RBC Capital Markets argued that oil’s "ultimate landing point" will likely hinge on whether Iran chooses to target tankers, pipelines and key energy facilities across the Middle East in retaliation to the strikes. Security fears in the Strait of Hormuz -- a major shipping artery -- will specifically be heightened, they said.