- Oil prices jumped on increasing expectations of a wider conflict in the Middle East that could impact crude oil flows from the key region.

- Brent crude futures rose by 80 cents, or 1.08%, to $74.70 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures increased by 85 cents, or 1.21%, to $70.95.

- Following initial concerns over geopolitical risks in the Middle East, we have seen some calm return to global markets; however, market participants are still closely monitoring any military response. The question for oil now is whether Iran's energy infrastructure will be in the crosshairs.

- U.S. oil inventories rose by 3.9 million barrels to 417 million barrels for the week ending September 27, according to the Energy Information Administration, compared to expectations of a 1.3 million-barrel draw. The increase in U.S. inventories added evidence that the market is well supplied and can withstand any disruptions.

- Some investors remained unfazed as global oil supplies have yet to be affected by unrest in the key producing region, and OPEC's spare capacity eased concerns.

- OPEC has enough spare oil capacity to compensate for a complete loss of Iranian supply if oil facilities are targeted.
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