Oil prices jumped by more than $5 on Friday, reaching multi-month highs, after Israel launched strikes against Iran, triggering Iranian retaliation and raising concerns about a disruption of oil supplies in the Middle East.

Brent crude futures rose by $5.25, or about 7.6%, to $74.61 per barrel at 12:15 GMT, after reaching an intraday high of $78.50 GMT, after reaching an intraday high of $78.50, the highest since Jan. 27.

American West Texas Intermediate crude rose $5.57, or 8.2%, to $73.61 after reaching $77.62, its highest level since Jan. 21.

Friday's gains were the biggest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused energy prices to soar.

Israel announced on Friday that it had targeted Iranian nuclear facilities, ballistic missile factories and military commanders, at the start of what it said would be a protracted operation to prevent Tehran from acquiring atomic weapons. Iran has promised a firm response

US President Donald Trump has urged Iran to reach an agreement on its nuclear program, in order to put an end to the “next attacks that have already been planned.”

The Iranian National Oil Refining and Distribution Corporation said that the oil refining and storage facilities had not been damaged and were still operating.

A rise in oil prices could also cloud Germany's economic outlook, the economic institute DIW Berlin said on Friday.