As Iran and Israel trade strikes targeting nuclear facilities and energy sites, an oil expert says crude prices could rally by US$5 a barrel and possibly reach $80.

Calm returned to Wall Street, and U.S. stocks rallied, while oil prices gave back some of their initial spurts following Israel’s attack on Iranian nuclear and military targets at the end of last week.

Treasury yield jumped 6.9 basis points on Friday to $4.426, reversing a dip in the immediate aftermath of the attacks.

Hedge funds took the most bullish stance on US crude since January in the week before Israel launched strikes against Iran’s nuclear program, putting them in a position to profit from this week’s jump in oil prices.

JPMorgan Chase & Co. said oil could reach $130 in a worst-case scenario. The US and Iran are scheduled to hold a sixth round of nuclear talks in Oman on Sunday.