Oil advanced as geopolitical tensions in the Middle East between the US and Iran ticked higher, reanimating investor concerns that the Israel-Hamas war may spark a wider conflict and disrupt crude supplies.
Benchmark Brent gained above $89 a barrel to pare a weekly loss, while West Texas Intermediate rose above $84. In the latest developments, the US military struck two Iran-linked facilities in Syria, after the Pentagon had announced the deployment of extra military personnel to the region. Earlier, Tehran said the US won’t be unaffected if the conflict widens. Crude’s surge followed a muted open, with futures jumping as the Syrian strikes were announced.
Oil has been rocked since the Oct. 7 Hamas attack on Israel, initially surging on fears of a wider conflict but then paring those gains as the war remained contained and concerns surfaced about the scope for weaker physical demand. Still, indications Israel will launch a ground invasion of the Gaza Strip will keep tensions high in a region that accounts for about a third of global crude supply.
Read the full story on Bloomberg here.