Market News

ST PETERSBURG, Russia (Reuters) -Russian President Vladimir Putin said on Friday that oil prices had not risen significantly due to the conflict between Iran and Israel, and that there was no need for the OPEC+ group of oil producers to intervene in oil markets.

Oil prices have rallied as a week-old air war between Israel and Iran escalated and uncertainty about potential U.S. involvement kept investors on edge, with Brent crude futures touching their highest since late January.

Putin said the price of oil now stands at around $75 per barrel, while before the conflict escalated it stood at $65.

"Of course, we see that the current situation in the Middle East, the current situation related to the conflict between Iran and Israel, has led to a certain increase in prices. But this increase, in the opinion of our experts, is not significant," Putin told the St Petersburg Economic Forum.

Iran is the third largest producer among members of the Organization of the Petroleum Exporting Countries. Hostilities could disrupt its supply of oil and thereby increase prices.

Putin also said OPEC and allies including Russia - a group known as OPEC+, which pumps about half of the world's oil - were increasing oil output, but doing so gradually, to ensure balance in the oil market and "comfortable" prices.

"We will all see together how the situation unfolds. So far no immediate response is required," he said.

(Reporting by Vladimir Soldatkin and Guy Faulconbridge; Editing by Andrew Osborn and Jan Harvey)