The price of U.S. crude oil increases by over 4% due to trader concerns about a potential escalation in the Middle East that may disrupt oil supplies.

• This week, U.S. crude oil has experienced a 7% increase in value due to trader concerns over potential Israeli retaliation against Iran targeting crude oil infrastructure.
• OPEC+ spare oil capacity is keeping prices from running higher, analysts say.
• The possibility of a strike by Israel against Iran could cause concerns about a disruption in the Strait of Hormuz and increase the cost of doing business in the region.

On Thursday, U.S. crude oil prices increased by more than 4%, continuing their upward trend for the third consecutive day, as the market anticipates Israel's response to Iran's actions.

As fighting in the Middle East intensifies, the risk of oil supply disruptions rises, but OPEC+ has a significant amount of spare crude that could be utilized to mitigate the impact, according to Claudio Galimberti, the chief economist at Rystad Energy.

U.S. crude oil has gained about 7% this week.

Here are Thursday's energy prices:

• The November contract price for crude oil is $73.05 per barrel, which represents a $2.95 increase, or 4.21%, compared to the previous month. To date in the year, the U.S. has seen crude oil gain more than 1%.
• The December contract price for oil is $76.72 per barrel, which is an increase of $2.82, or 3.82%, compared to the previous month. Despite this, the global benchmark has only fallen less than 1% year to date.
• The price of gasoline in November was $2.0584 per gallon, which represents a 3.65% increase. However, year to date, gasoline has experienced a decline of more than 2%.
• The November contract price for gas is $2.969 per thousand cubic feet, representing a 2.88% increase. To date, gas has experienced a gain of more than 18%.

Galimberti informed clients in a Thursday note that the spare capacity is currently preventing runaway prices during one of the deepest and most widespread crises in the Middle East in the past four decades.

If Israel retaliates against Iran's ballistic missile attack by striking its oil infrastructure, OPEC+ spare capacity would be sufficient to cover any disruption to Iran's exports, according to Bjarne Schieldrop, the chief commodities analyst at SEB.

Schieldrop stated that if traders started worrying about supply disruptions in the Strait of Hormuz, it would increase the risk premium for oil.

If Israel attacks Iran's oil infrastructure, oil prices could rise to $200 per barrel, according to him.