Oil Prices Surge 3% Amid Iran-Israel Tensions

Published on: Oct 1, 2024Last updated on: Oct 1, 2024
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Oil prices surged by 3% on reports that Iran is preparing to launch a missile attack on Israel, potentially widening the conflict in the Middle East and increasing the chances of crude supply disruptions. West Texas Intermediate (WTI) rose above $70 a barrel, while Brent crude climbed to over $73.

Iran's involvement in the conflict heightens concerns over potential disruptions in oil supplies from a region that accounts for a third of the world's crude. The escalation in tensions follows Israel's strikes on Hezbollah after the killing of its chief, Hassan Nasrallah. Oil prices had been in a slump due to rising supplies and concerns over weak demand from China, but the geopolitical risks are now adding a premium to oil prices.

The situation underscores the delicate balance in global oil markets, where any supply disruptions could have wide-reaching effects.

Market Reactions

Here are the latest market reactions to the developments in the Middle East:

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