U.S. crude oil rose about 2% on Monday, as the market waited for Israel to strike Iran.
Oil prices spiked last week on fears that Israel could hit Iran's oil industry in retaliation for Tehran's ballistic missile attack.
The impact on the oil market would be significant if Israel struck Kharg Island, through which 90% of Iran's crude exports pass, Croft said.
The worst-case scenario is a disruption in the Strait of Hormuz, through which 20% of the world's crude exports flow, Gelder said.
Iran might target the strait in response to an Israeli strike, which would have a far more dramatic effect on crude prices, the analyst said.
Persons:
Israel, Joe Biden, Biden, Helima Croft, Croft, CNBC's, Alan Gelder, Wood Mackenzie, Gelder
Organizations:
Texas Intermediate, Brent, RBC Capital Markets
Locations:
Israel, Iran, U.S, Kharg, Wood, Strait, Hormuz