Brent crude chalked up its biggest one-day jump of 2024, with remarks by US President Joe Biden spurring speculation among traders over whether Israel could engage in retaliatory strikes against Iran’s oil industry.

The international oil benchmark settled 5 per cent higher at $77.62 a barrel, its biggest jump since October last year. West Texas Intermediate, the US marker, also gained more than 5 per cent to $73.71 a barrel.

Vikas Dwivedi, a global energy strategist at Macquarie Group, said he expected oil prices to rise in the short term, potentially jumping to $85 a barrel.

“This is a replay of Russia-Ukraine,” Dwivedi said, adding that the only way for prices to surge near $100 a barrel would be if there was a direct hit to oil export facilities. “We don’t think [a hit to oil supply] is a big concern.”