Iran, which is a member of OPEC, is a major player in the global oil market.
It's estimated that as much as 4% of global supply could be at risk if Israel targets Iran's oil facilities.
For some analysts, the reason crude prices have yet to move even higher is because the oil market is short.
watch nowTamas Varga, an analyst at oil broker PVM, told CNBC via email on Thursday that the oil market was pricing in some risk premium given the geopolitical concerns.
These fears, however, will be greatly alleviated in [the] coming days unless oil supply from the region or traffic through the Strait of Hormuz are materially impacted," he added.
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