US President Joe Biden has said that Washington is discussing possible Israeli strikes on Iran’s oil facilities as retaliation for Tehran’s missile attack on Israel. "We're discussing that," Biden told reporters.

His comments contributed to a surge in global oil prices amid rising fears of potential supply disruptions. Brent, the international benchmark, surged over 5% to $77.62 (€70.3) a barrel, with US contract West Texas Intermediate rising similarly.

Biden, however, added that he thought an all-out war could be avoided.

"I think we can avoid it, but there's a lot to do yet," he told reporters, stressing that "we're going to help
Israel."

After Tuesday's missile attack, Israeli Prime Minister Benjamin Netanyahu vowed retaliation.

The US said it would work with its longtime ally to ensure Iran faced "severe consequences."

Iranian President Masoud Pezeshkian, meanwhile, said that Tehran would be ready to respond.

"Any type of military attack, terrorist act or crossing our red lines will be met with a decisive response by our armed forces," he said.