CANADA-CRUDE-Discount on Western Canada Select narrows as global oil prices leap on Israel-Iran air strikes

June 13 (Reuters) - The discount on Western Canada Select (WCS) to the North American benchmark West Texas Intermediate (WTI) futures CLc1 narrowed on Friday, as global oil prices leaped on escalating Israel-Iran tensions.

WCS for July delivery in Hardisty, Alberta, settled at $8.90 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, compared with $9.05 a barrel in Thursday's trade.

Global oil prices jumped on Friday and settled 7% higher as Israel and Iran traded air strikes, feeding investor worries that the combat could widely disrupt oil exports from the Middle East.

• WCS discounts have been trading in the range of between $8.80 to $9.10 below WTI this month, the tightest differentials for Canadian crude the market has seen since 2020, when the COVID-19 pandemic caused global oil price volatility.

• Canadian heavy crude has been trading at a tight discount in recent months in part due to the opening of the Trans Mountain pipeline expansion one year ago, which boosted the country's oil export capacity to Asian markets, including China.

• China is the world's top crude importer, and the top importer of crude from Iran.

• WCS also typically sees seasonal strength this time of year as the return of summer driving season ramps up refinery demand.

• Canadian crude has also benefited from U.S. sanctions on Venezuela and other countries, which is boosting demand for non-sanctioned heavy crude producers.