(MENAFN) Oil rates climbed on Tuesday as geopolitical tensions escalated amidst ongoing cease-fire negotiations in Gaza and the Israeli military's assault on the Palestinian side of the Rafah border crossing.
Brent crude, the international benchmark, traded at USD83.42 per barrel at 10:28 a.m. local time (0728GMT), reflecting a notable increase of 1.32 percent from the previous session's closing price of USD82.33 per barrel. Similarly, the American benchmark West Texas Intermediate (WTI) also saw a slight uptick, trading at USD78.55 per barrel at the same time, marking a 0.09 percent rise from the previous session's closing price of USD78.48 per barrel.
The surge in oil prices can be attributed to heightened geopolitical tensions stemming from the Israeli military's assault on the Palestinian side of the Rafah border crossing. Reports from a Palestinian news agency indicated that the Israeli army targeted buildings in the region with rockets, further exacerbating the situation.
These attacks have dampened hopes for a swift cease-fire in Gaza, raising concerns about the potential escalation of conflict in the region. Given that the Middle East is home to a significant portion of the global oil reserves, investors are apprehensive about potential disruptions to oil supply, thereby supporting higher oil prices.
As cease-fire negotiations continue and geopolitical tensions persist, market participants remain vigilant, closely monitoring developments in the region for any potential impact on oil markets.
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