Oil rates rise amid concerns of regional war
Date
8/26/2024 5:05:23 AM
(MENAFN) Oil prices continued to rise on Monday amid concerns that escalating tensions in the Middle East could potentially disrupt oil supplies from the region. This comes as expectations of upcoming US interest rate cuts bolstered the global economic outlook and increased fuel demand, according to a UK news agency.
Brent crude futures climbed by 37 cents, or 0.5 percent, reaching USD79.39 per barrel by 2300 GMT, while U.S. crude futures similarly gained 36 cents, or 0.5 percent, to trade at USD75.19 per barrel. The market reacted to geopolitical tensions, with traders keeping a close eye on developments in the Middle East.
On Sunday, one of the largest cross-border clashes in over 10 months occurred as Lebanon's Hezbollah militia launched hundreds of rockets and drones into Israel. In response, the Israeli military stated that it had targeted sites in Lebanon with approximately 100 aircraft in an effort to prevent a larger-scale attack.
This escalation has heightened fears that the conflict in Gaza could expand into a broader regional war, potentially involving Iran, a key supporter of Hezbollah, and the United States, Israel's primary ally. Tony Sycamore, a market analyst at IG, noted that Israel's preemptive strikes on Lebanon over the weekend to prevent an imminent Hezbollah assault could push oil prices higher, with WTI crude possibly extending its recovery towards USD77.50 per barrel.
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