Oil prices surged on Thursday due to rising concerns that ongoing conflicts in the Middle East—home to major oil producers—could disrupt global oil supplies as Israel prepares to retaliate against Iran.
The international benchmark for Brent crude rose by 1.2% to $75.82 per barrel at 11:14 a.m. local time (0814 GMT), up from the previous close of $74.90.
Similarly, the U.S. benchmark, West Texas Intermediate, increased by 1.3% to $71.88 per barrel, compared to $70.95 at the end of the prior session.
Israel’s public broadcaster KAN reported on Wednesday that the country is on the verge of launching an attack on Iran, despite pressure from the U.S. to de-escalate.
According to KAN, unnamed Israeli officials stated, “Israel is on the brink of launching an attack on Iran. We are witnessing one of the most tense and complex moments in Israel’s history as preparations for a potential strike in response to Iran’s rocket attack are underway.”
Israeli media has speculated that the potential attack could target oil or nuclear facilities, heightening fears of a broader regional conflict.
In response, Tehran has vowed to deliver a “more painful” retaliation if it is targeted by Tel Aviv.
Meanwhile, experts are monitoring economic indicators from major economies for insights into the demand outlook.
Recent macroeconomic data from the U.S. and positive earnings reports from large corporations suggest that economic activity remains robust.
Analysts anticipate that the U.S. Federal Reserve will lower the policy rate by 25 basis points next month, with a 65% chance of a rate cut in December.
Additionally, the European Central Bank is expected to reduce its interest rate by 25 basis points in December, with the possibility of a 50 basis points cut also under consideration.
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