(MENAFN) Oil rates rose on Tuesday due to uncertainties surrounding a full cease-fire between Israel and Hamas and ongoing questions about the timing of the US Federal Reserve's interest rate cuts. The international benchmark Brent crude traded at USD87.34 per barrel at 10:36 a.m. local time (0736 GMT), showing a 0.16 percent increase from the previous session's closing price of USD87.20 per barrel. The American benchmark West Texas Intermediate (WTI) traded at USD82.79 per barrel at the same time, marking a 0.19 percent rise from the previous session's close at USD82.63 per barrel.
On Monday, US Secretary of State Antony Blinken participated in a six-way Arab ministerial meeting in Riyadh, Saudi Arabia, to discuss the Gaza Strip cease-fire. The meeting focused on the urgent need to achieve an immediate and sustainable cease-fire in the region, ensure the protection of civilians, and facilitate access to humanitarian aid in the Gaza enclave. Following the meeting, the Israeli delegation plans to travel to Egypt to meet with Egyptian security officials to discuss cease-fire efforts in Gaza, as reported by Israeli media.
Despite Israeli government officials' refusal to agree to a full cease-fire and their continuation of attacks in the region, Hamas remains committed to a comprehensive cease-fire in Gaza. These disagreements and the uncertainty surrounding the likelihood of a full cease-fire are contributing to the increase in oil prices in a region that hosts major oil trade routes and faces ongoing supply risks.
Additionally, uncertainties persist regarding the timing of interest rate cuts by the US Federal Reserve (Fed), which also impact oil prices. While analysts anticipate the Fed will maintain the policy rate unchanged for now, there is a probability of 11 percent for rate cuts in June, 30 percent in July, and 58 percent in September.
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