Oil steadied as the US intensified diplomatic efforts to contain the crisis in Gaza, with President Joe Biden to visit Israel this week to spearhead his administration’s drive to prevent a regional conflagration.
West Texas Intermediate held above $86 a barrel after ending more than 1% lower on Monday. Biden will travel to the country on Wednesday to show his support after the Oct. 7 attacks by Hamas that sparked the conflict. At the same time, Israel is still making plans for a ground offensive into Gaza.
The crude market has been left on edge by the sudden crisis in the Middle East on concern that it risks spreading beyond Israel and Gaza, potentially endangering crude flows from key producers. Iran, which supports Hamas, has warned that an expansion of the war was “approaching the inevitable stage.” Tehran also backs the Hezbollah armed group in southern Lebanon.
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