Oil prices jump on worries of widening Middle East conflict
Make us a preferred source
Make us a preferred source on Google
The news: Oil prices rose for a fifth consecutive session on expectations of a widening Middle Eastern conflict that could tighten global crude oil supplies.
The numbers: Global benchmark Brent crude futures rose 3.3% to USD82.30 ($124.94) a barrel, its biggest percentage gain for a single trading session this year. US West Texas Intermediate (WTI) crude futures climbed 4.2% to USD80.06 a barrel, their biggest daily gain since October 2023.
The context: Prices continued to climb after the US Defense Department said over the weekend that it will send a guided missile submarine to the Middle East as the region braces for possible attacks on Israel by Iran and allies.
Iran and Hezbollah have vowed to retaliate for the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr. An attack could widen the Middle Eastern conflict, while tightening access to global crude supplies and boosting prices.
Prices are also being supported by hopes for an interest rate cut in the US, the world's biggest consumer of crude oil. US central bankers last week said that inflation appeared to be cooling enough for the Federal Reserve to cut interest rates as soon as next month. Rate cuts tend to raise economic activity, which increases the use of energy sources such as oil.
The source: Reuters
