Nearly 3% increase in crude oil price after Israel's promise of a 'painful' response to Iran missile attack.

• Israel's UN ambassador, Danny Danon, pledged on Tuesday that Israel will retaliate with a "severe" action against Iran.
• Traders fear Israel's response could target Iranian oil facilities.

On Wednesday, U.S. crude oil experienced a nearly 3% increase in value due to trader concerns about a potential Israeli attack on Iran's oil infrastructure in response to a ballistic missile attack.

Israel's ambassador to the UN, Danny Danon, pledged on Tuesday that Israel will retaliate against Iran with a "painful" response following the Islamic Republic's attack on Israel with around 180 ballistic missiles.

Here are Wednesday's energy prices:

• U.S. crude has increased by 2.91% to $71.86 per barrel in November, compared to a gain of less than 1% year to date.
• The December contract price for oil is $75.50 per barrel, which represents an increase of $1.94 or 2.64%. However, the global benchmark for the year to date has decreased by approximately 2%.
• The price of gasoline in November was $2.0113 per gallon, which represents a 2.27% increase. However, year to date, gasoline prices have decreased by nearly 5%.
• The November contract price for gas is $2.984 per thousand cubic feet, representing a 3.04% increase. To date, gas prices have risen almost 19%.

Piper Sandler analysts stated in a Wednesday note that the next move in the retaliation spiral could be an attack on Iran's oil industry, which could harm Tehran's income and weaken its ability to wage war.

Goldman Sachs analyst Yulia Zhestkova Grigsby advised clients Wednesday that the geopolitical risk premium should remain moderate due to high global spare oil capacity and limited actual production disruptions.

In December, OPEC+ plans to boost oil production, while U.S. output has reached new highs. Despite being the world's largest crude importer, demand in China has been weak this year.