The Iran shock presents two risks to the price of oil, which rose 8 per cent to $74 a barrel on Friday morning, a sizeable jump for a single day. The first is that, in the context of the rising hostilities, Iran’s current crude exports, which have already been softening, could fall further.

Iran has in the past threatened to disrupt shipping through the Strait of Hormuz if it is attacked. The Strait is the exit route from the Middle East Gulf for around 20% of the world's oil supply, including Saudi, UAE, Kuwaiti, Iraqi and Iranian exports.

Fears that Israel may destroy Iranian oil facilities to deprive it of its main source of revenue have driven oil prices higher.

Gas prices "will likely start to rise across much of the country later this evening in response to Israel's attacks on Iran, which have caused oil prices to surge," Patrick de Haan, the head of petroleum analysis at GasBuddy, said on Friday in a post on X.

Follow the latest news after Israel launched strikes at Iran, a dramatic escalation in long-running tensions between the two countries.

Israel’s sweeping attack on Iran has sent a jolt through markets and again thrust geopolitical risk front and center for investors. The initial reaction was sharp, with oil prices briefly surging as much as 13%,