Oil prices were on track for weekly gains of 9 per cent as investors feared a wider West Asian conflict could disrupt crude flows after President Joe Biden said the US was discussing an Israeli attack on Iranian oil facilities.

Brent futures were up 66 cents, or 0.85 per cent, at $78.28 a barrel, as of 1323 GMT. US West Texas Intermediate crude futures were up 63 cents, or 0.85 per cent, at $74.34 a barrel.

The US is discussing whether it would support Israeli strikes on Iran’s oil facilities as retaliation for Tehran’s missile attack on Israel, Biden said on Thursday.

Israel could attack Iran’s refineries or main Kharg Island oil export terminal, with the aim of disrupting the country’s oil revenues, JPM commodities research analysts said.

“This option, however, is unlikely to gain favour with the US administration, which would be wary of disrupting oil markets in the weeks leading up to the presidential elections,” the analysts added.

Iran will target Israeli energy and gas installations if Israel attacks it, the semi-official Iranian news agency SNN quoted Revolutionary Guards deputy-commander Ali Fadavi as saying on Friday.