Energy stocks gain as ASX falls
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More news: Energy stocks bucked the trend on the ASX, as the only sector to rise on the back of climbing oil prices.
The energy sector was 0.31% higher by 1:00pm AEDT, with Viva Energy (1.87%), Karoon Energy (1.77%), Ampol (1.71%), Santos (1.5%) leading the surge.
Meanwhile, the ASX 200 was down 0.85% with 10 of its 11 sectors falling.
Oil prices rise to highest since October
The news: Oil prices have climbed above USD90 ($136.62) for the first time since October amid rising geopolitical tensions in the Middle East.
The numbers: Brent crude futures closed 1.5% higher at USD90.65 a barrel, while US West Texas Intermediate (WTI) crude gained 1.4% to USD86.59 a barrel. Both contracts have now extended gains to their highest level since October 2023.
The context: Prices rose after Israeli Prime Minister Benjamin Netanyahu told a security cabinet meeting that his country will operate against Iran and its proxies and will hurt those who seek to harm it, Reuters reported.
This followed news reports that Israeli embassies had been placed on high alert due to increased threats of an Iranian attack on Israeli diplomats. Iran, the third-largest producer in OPEC, has vowed revenge against Israel for an attack that killed high-ranking Iranian military personnel.
Meanwhile, in a sharp shift in tone, US President Joe Biden has issued his strongest public rebuke toward Israel since the start of its war with Hamas, warning that US policy on Gaza will be determined by whether Israel takes steps to address the safety of Palestinian civilians and aid workers. Oil's recent gains have also followed Ukrainian attacks on Russian refineries that cut global fuel supply.
The source: Reuters
