Oil prices rise with Middle East tensions

Oil prices spiked as the conflict between Israel and Palestine and the Russia-Ukraine war continued to put global energy supply routes at risk. (Pexels Photo)

ANKARA – Oil prices rose on Tuesday after hopes fell that negotiations between Israel and Hamas would lead to a ceasefire in Gaza amid concerns the lingering conflict could disrupt supplies from the Middle East, a key oil-producing region.

International benchmark Brent crude traded at USD90.93 per barrel at 12 noon local time (0900GMT) on Monday, up 0.60 percent from the closing price of USD90.38 per barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI) traded at USD86.92 per barrel at the same time, up 0.56 percent from the previous session, which closed at USD86.43 per barrel.

Oil prices spiked as the conflict between Israel and Palestine and the Russia-Ukraine war continued to put global energy supply routes at risk.

On efforts for a ceasefire in the Gaza Strip, Palestinian group Hamas said Tuesday: “The Israeli position remains intransigent and has not responded to any of the demands of our people and our resistance.”

These developments supported higher oil prices by raising concerns about further supply disruptions in the Middle East, where the majority of global oil reserves are located.

This week, the market will be watching inflation data from the US and China for further signals on the economic direction of the world’s top two oil consumers.