The recent increase in crude prices and energy stocks is all about Israel and Iran. But oil is still well below highs for the year.

Oil prices rose on Wednesday as investors reacted to escalating tensions in the Middle East following Iran's missile attack on Israel. Concerns over disruptions to energy supplies intensified, driving market uncertainty and pushing prices higher.

What worries oil traders the most as tensions build in the wake of Iran’s missile attack on Israel is a potential disruption to the flow of crude in the Middle East — and when it comes to Iran, export terminal Kharg Island could be a key target for the Israel Defense Forces.