Oil Prices Jump on Iran Embargo Call and Supply Concerns Amid Gaza Conflict

Oil prices jumped as Iran called for a crude embargo against Israel amid the Gaza conflict. Brent crude rose nearly 2% above $91 per barrel.

Iran's foreign minister urged Muslim countries to boycott Israel after a Gaza hospital bombing. This could impact oil markets since Iran is a major producer.

EIA data showed a drop in US crude inventories, signaling increased oil demand. Stockpiles at the Cushing storage hub fell to the lowest since 2014.

Despite recent volatility, oil prices are still about 7% below their 2022 high in September. Fundamentals point to a balanced or slight deficit in supply/demand.

Energy stocks like Exxon and Chevron moved higher as oil prices rose. The energy ETF XLE was up more than 1.5% on the oil price gains.