Oil rates surge driven by supply concerns amid rising Middle East tensions
Date
6/24/2024 10:03:16 AM
(MENAFN) Oil rates experienced a slight increase on Monday, driven by concerns over supply disruptions amid rising tensions in the Middle East. At 11:18 a.m. local time (0818 GMT), the international benchmark brent crude was trading at USD84.53 per barrel, reflecting a 0.24 percent increase from the previous session's closing price of USD84.33 per barrel. Similarly, the American benchmark, West Texas Intermediate (WTI), was trading at USD80.90 per barrel, marking a 0.21 percent rise from the prior session's close of USD80.73 per barrel.
The geopolitical unrest in the Middle East continues to threaten global energy supply routes, contributing to the upward pressure on oil prices. In recent weeks, tensions have significantly escalated along the Israeli-Lebanese border, prompting repeated appeals from the United States for restraint. According to sources cited by Channel 12, Israel has informed the US that it might deploy previously unused weaponry in the event of a full-scale conflict with Hezbollah in Lebanon. The Israeli television channel reported that "Tel Aviv conveyed a message to the White House stating its intent to employ unspecified new weapons systems to swiftly deal with any potential conflict with Hezbollah and avoid a prolonged war."
The situation along Lebanon's border with Israel has grown increasingly volatile, with frequent cross-border attacks between Hezbollah and Israeli forces. This escalation comes as Israel continues its aggressive military campaign in the Gaza Strip, which has resulted in the deaths of more than 37,500 Palestinians since October of the previous year.
Adding to the regional instability, Yemen's Houthi group has persisted in targeting cargo ships in the Red Sea that are either owned or operated by Israeli companies or are transporting goods to and from Israel. These attacks are carried out in solidarity with the Gaza Strip, further exacerbating concerns over the security of vital maritime routes and contributing to the rise in oil prices.
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