Oil extends gains as Middle East supply risks escalate
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The news: Oil prices rose for a third day on Wednesday as investors assessed supply risks in the Middle East as combat in southern Lebanon continued.
The numbers: Brent crude was last up 1.03% to USD74.66 ($108.44) a barrel. US West Texas Intermediate climbed 1.11% to USD70.88 after advancing almost 3% over the prior two sessions.
A major strike by Israel on Iran's oil-exporting capacity could remove 1.5 million barrels of daily supplies off the market, Bloomberg reported, citing Citigroup data. If Israel hit minor oil assets, between 300,000 and 450,000 barrels could be lost, it said.
The context: Eight Israeli soldiers have been killed in the first day and a half of combat in southern Lebanon as Israel’s military clashed with Hezbollah in intense close-quarter combat, officials said.
Israeli Prime Minister Netanyahu said Iran would "pay" for firing over 180 missiles, but President Biden urged restraint, supporting proportional retaliation but not an attack on Iranian nuclear sites.
The source: Bloomberg
