Oil Prices Rise Amid Middle East Tensions
Heightened Tensions in the Middle East
Oil prices saw an increase on Tuesday following escalating tensions in the Middle East after Israel’s military chief stated that the country would retaliate against Iran’s recent missile and drone attack. Despite calls for restraint by allies, concerns over a potential conflict continue to impact the market.
Market Movement
Oil futures for June delivery rose by 0.5% to $90.56 a barrel, while futures for May delivery increased by 0.5% to $85.84 a barrel. The previous session ended with lower prices after Iran’s attack on Israel was less severe than initially anticipated, easing fears of a significant disruption in crude oil supply.
Impact on Supply
Although the recent attack by Iran caused only minor damage, Israel’s Prime Minister convened his war cabinet to discuss potential responses. Market concerns are heightened as Iran is a key OPEC member, producing over 3 million barrels per day.
Market Speculation
Oil benchmarks surged on Friday in anticipation of Iran’s retaliatory actions, reaching their highest levels since October. In China, the world’s largest oil importer, slowing economic growth may prompt policymakers to introduce stimulus measures, influencing oil prices.
Global Economic Impact
Official GDP figures from China are expected to reveal a slowdown in growth, potentially leading to increased economic stimulus efforts. This could have a significant impact on oil prices, shaping market dynamics in the coming days.
