Oil declined, tracking losses in equity markets, as Israel held off on its ground invasion of Gaza amid diplomatic efforts to secure the release of more hostages.
Global benchmark Brent dipped below $92 a barrel and West Texas Intermediate traded near $87 after two straight weeks of gains. Israel warned that Iran-backed Hezbollah risked dragging neighboring Lebanon into the war even as it continued fierce air raids on Hamas in Gaza. More than 60,000 people in Israel have been evacuated along the border with Lebanon.
Brent has advanced about 8% since the Oct. 7 attack on Israel by Hamas on concerns the conflict will drag in other nations including Lebanon, Iran and potentially the US. The Middle East supplies around a third of the world’s crude and the main risks for the market are that Washington ramps up compliance checks on sanctioned Iranian oil and that Tehran disrupts key shipping routes.
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