(Bloomberg) — Oil extended gains on escalating tensions in the Middle East after blowing past the $90-a-barrel threshold for the first time since October in the previous session.
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Global benchmark Brent crude traded above $91 and West Texas Intermediate was near $87. Tensions have soared since Monday, when an Israeli strike on an Iranian diplomatic compound in Syria killed senior military officials. Israel increased preparations for a potential retaliation by Tehran, stoking fears of a wider regional conflict.
Crude has surged by 18% this year on heightened geopolitical tensions in the Middle East and Ukraine, as well as OPEC+’s supply restrictions and healthy demand. The conflict between Israel and Hamas had led to Houthi attacks on shipping in the Red Sea, pushing up transport costs, but has so far not escalated into a wider war in a region that accounts for around a third of the world’s oil supply.
Cease-fire talks between Israel and Hamas — which could see the release of hostages held in Gaza — remain deadlocked. Israel’s economy minister said he doesn’t trust Qatar to act as a mediator with Hamas, designated a terrorist organization by the US and Europe.
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