Oil prices rise amid escalating Middle East tensions
Date
10/5/2024 8:28:44 AM
(MENAFN) Oil prices continued their upward trajectory on Friday, driven by increasing concerns that Israel may target Iranian oil facilities in response to Iran's recent missile attack. The international benchmark brent crude saw an increase of 0.53%, reaching $78.03 per barrel at 10:25 a.m. local time (0725 GMT), up from the previous session's close of $77.62. Similarly, US benchmark West Texas Intermediate (WTI) rose by 0.52% to $74.09 per barrel, following a close of $73.71 in the prior session.
The rise in oil prices is largely attributed to a geopolitical risk premium as tensions in the Middle East escalate. US President Joe Biden indicated on Thursday that discussions are ongoing between the US and Israel regarding potential strikes on Iranian oil facilities after Tehran launched nearly 200 ballistic missiles at Israel. Following this news, oil prices surged by approximately 5%, reflecting fears of possible supply disruptions in a region that holds a significant portion of the world's oil reserves.
Iran has vowed to escalate its response if Israel retaliates for the missile attack, which it claims was in response to the killing of key figures in Hezbollah and Hamas by Israeli forces. Meanwhile, extensive Israeli airstrikes on Lebanon persist, amid ongoing border clashes with Hezbollah. The Israeli army has announced "limited, localized" ground operations in southern Lebanon, indicating that further escalation is likely. On Thursday, the Israeli army ordered the evacuation of residents in 25 towns in southern Lebanon, instructing them to move north of the Litani River.
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