Oil prices surged on Friday after US president Joe Biden suggested that US officials are discussing whether to support Israeli strikes on Iranian oil facilities, a move that could lead to higher petrol prices in the UK and globally.

Oil is on track for its strongest week in more than a year as Brent crude futures (BZ=F) rose 1.7% to $78.93 a barrel, while US West Texas Intermediate (CL=F) crude climbed 1.6% to $74.98 per barrel at the time of writing.

Biden’s remarks came after he was asked on Thursday whether he would back Israeli strikes on Iran’s oil infrastructure, which accounts for the world's seventh-largest oil production.

“We’re discussing that,” Biden responded, intensifying market concerns about the potential impact on global oil supplies.

Analysts warn that a major strike could remove up to 1.5 million barrels of Iranian crude from daily global supply. Furthermore, any disruption in the strategically important Strait of Hormuz could push oil prices up by as much as $28 per barrel, according to market estimates.

UBS Global Wealth Management chief investment officer Mark Haefele noted that the ongoing Middle East conflict, while primarily a humanitarian crisis, has also "contributed to periods of market volatility" due to fears that a regional war could severely disrupt oil supplies. While UBS does not foresee an all-out war, Haefele highlighted that oil positions can act as a hedge against further escalation, with market fundamentals already supporting higher prices.

Oil stocks, represented by the European oil and gas index (SXEP.Z), climbed 0.7% on Friday, poised for their best weekly performance in nearly six months, with a 4.1% rise so far this week. Energy stocks have been the only sector to post gains in recent days, reflecting heightened investor demand.

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Amrita Sen, director of research at Energy Aspects, warned that oil prices could spiral even higher if Israel targets Iranian refineries and Tehran retaliates by attacking other oilfields and refineries in the region.

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Exxon Mobil (XOM)

Shares in Exxon Mobil were higher in pre-market trading after closing Thursday's session at $122.

Exxon Mobil, which has gained nearly 20% year-to-date, remains highly sensitive to global oil price movements. As one of the world’s largest oil producers, with significant operations across the Americas and Africa, ExxonMobil could see a substantial boost in revenues from any disruptions in Middle Eastern supply.