October 9, 2023
1 min read

Middle East Tensions Push Oil Prices Higher

The Israel and Palestinian territories are not oil producers, but the Middle Eastern region accounts for almost a third of global supply….reports Asian Lite News

Oil prices jumped by 4 per cent on Monday on concerns that the situation in Israel and Gaza could disrupt output from the Middle East.

The West Texas Intermediate (WTI), the benchmark for US oil, rose to more than $86 a barrel, while the price of Brent crude also surged in early Asian trading, the BBC reported.

The Israel and Palestinian territories are not oil producers, but the Middle Eastern region accounts for almost a third of global supply.

A wave of attacks launched by the Hamas militant group on October was the biggest escalation between the two sides for decade

Western nations condemned the attacks but a spokesperson for Hamas told the BBC that the group had direct backing for the attack from Iran.

Iran denied involvement in the attack at at UN Security Council meeting in New York on Sunday. But Iranian President Ebrahim Raisi has expressed support for the attack.

“The risk premium on oil is rising due to the prospect of a wider conflagration that could spread to nearby major oil producing nations such as Iran and Saudi Arabia,” energy analyst Saul Kavonic told the BBC.

“If the conflict envelops Iran, which has been accused of supporting the Hamas attacks, up to 3 per cent of global oil supply is at risk,” he added.

Around a fifth of global supply would be “held hostage”, Kavonic said, if passage through the Strait of Hormuz, a vital oil trading route is disrupted.

The Strait of Hormuz is crucial for the main oil exporters in the Gulf region, whose economies are built around oil and gas production, the BBC reported.

Uncertainty over how events could develop in the coming days may also drive investments into US Treasury bonds and the dollar – which investors traditionally bought at times of crisis, said James Cheo from HSBC bank.

ALSO READ: Gaza Nears Humanitarian Breaking Point

Previous Story

Abdullah, Blinken Discuss Israel-Palestine Situation

Next Story

Mumbai City FC Begins ISL Season with 2-1 Win Over Kerala Blasters

Latest from -Top News

American missionary abducted in Niger

The US Embassy in Niamey issued a security alert warning that American citizens “remain at a heightened risk of kidnapping throughout Niger, including in the capital city”…reports Asian Lite News An American

Ouattara predicted to win fourth term

Around 8.7 million Ivorians were registered to vote, though analysts had predicted a lower turnout compared with the last two elections, when participation slightly exceeded 50%…reports Asian Lite News Votes were being

Russia Fires at EU

Zakharova called the sanctions package “illegal” and “self-destructive”, while accusing Brussels of isolating itself on the international stage…reports Asian Lite News Russia’s Foreign Ministry Spokeswoman Maria Zakharova has slammed the European Union’s

Mamdani Hits Back at Racism

Mamdani criticised rivals for spreading “hatred,” saying their Islamophobia harms him and nearly one million Muslims in New York….reports Asian Lite News New York City mayoral candidate Zohran Mamdani on Friday delivered
Go toTop

Don't Miss

Russia lauds India-Middle East-Europe Economic Corridor

Putin says the IMEC would help Russia develop logistics and

Carrefour Rolls Out Multiple Circular Economy Initiatives

Carrefour deploys CHEP’s pallet pooling system across all of its