Oil prices climbed on Monday, extending Friday's rally, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.

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.

Israeli energy company Bazan said its Haifa oil refinery suffered pipeline and transmission line damage during Iran’s overnight missile barrage. Refining core facilities continue to operate at the site,

Israel unleashed airstrikes across Iran for a third day on Sunday and threatened even greater force as some Iranian missiles evaded Israeli air defenses to strike buildings in the heart of the

Market watchers believe a full-scale disruption of global oil flows by closing the waterway is unlikely, and might even be physically impossible.

Israel has warned of more attacks on Iran after Tehran fired waves of missiles and drones that killed three people and wounded dozens in Israel. Iran was retaliating for a series of blistering

Iran launched dozens of ballistic missiles toward Israel on Friday night in retaliation for Israel's surprise attack early Friday. Israel struck at the heart of the Iran's nuclear program, killing several nuclear scientists as well as high-ranking military leaders,