Oil prices jump 3% on reports Iran is preparing missile attack on Israel

By Scott DiSavino

(Reuters) -Oil prices turned positive on Tuesday, jumping about 3%, following reports Iran was preparing to launch a missile attack on Israel.

Brent futures were up $2.04, or 2.9%, to $73.74 a barrel by 9:58 a.m. EDT (1358 GMT), while U.S. West Texas Intermediate (WTI) crude rose $2.11, or 3.1%, to $70.28.

The U.S. said it has indications that Iran is preparing to imminently launch a ballistic missile attack against Israel, according to a senior White House official.

The U.S. is actively supporting preparations to defend Israel against such a threat, and a direct military attack on Israel by Iran would carry severe consequences for Tehran, the official said.

(Reporting by Scott DiSavino in New York, Arunima Kumar in Bengaluru, Gabrielle Ng in Singapore and Georgina McCartney in Houston; Editing by David Goodman and Paul Simao)