Oil Prices Steady in Asian Trading Amid Middle East Crisis Concerns
Oil Prices Hold Steady in Early Asian Trading
Oil prices remained stable in early Asian trading on Thursday following a $1 increase per barrel in the previous session. Investors are preparing for a potential escalation of the Middle East crisis, particularly involving Iran, OPEC’s third-largest oil producer.
Market Reaction to Middle East Tensions
Oil futures saw a modest 4-cent rise to $90.52 per barrel, while U.S. West Texas Intermediate crude futures increased by 2 cents to $86.24 per barrel. The uptick came after a 1% surge in the previous session, triggered by the killing of three sons of a Hamas leader in an Israeli airstrike in Gaza, raising concerns about ceasefire negotiations between the two parties.
Concerns over Possible Iranian Retaliation
Amidst the ongoing tensions, the region is on high alert for potential Iranian retaliation following a suspected Israeli air strike on Iran’s embassy in Syria earlier this month. Reports suggest that the U.S. and its allies anticipate imminent major missile or drone strikes by Iran or its proxies against Israel.
Diplomatic Support for Israel
U.S. Secretary of State Antony Blinken has reassured Israeli Defense Minister Yoav Gallant of the United States’ solidarity with Israel against any threats from Iran. The U.S. State Department reiterated this commitment on Wednesday.
Market Analysis and Future Outlook
“The market is increasingly concerned about the possibility of the Israel-Hamas conflict spreading across the Middle East, potentially impacting oil supply,” noted ANZ analyst Daniel Hynes. Traders are eagerly awaiting the release of OPEC’s monthly oil market report on Thursday and the International Energy Agency’s report on Friday for further insights.
