Geopolitical pressure sparks a rally in Brent, WTI prices

By Adedapo Adesanya

Oil futures rose on Thursday on concerns about global crude supply disruptions as geopolitical pressure mounted in the Middle East and Europe, Brent crude rose $1.14, or 1.34%, to $86.39 per barrel, and U.S. West Texas Intermediate (WTI) crude oil futures gained. 84 cents, or 1.04 percent, to trade at $81.74 a barrel.

Border tensions between Israel and Lebanon’s Hezbollah have risen, raising concerns that a widening conflict could include other nations, such as Iran, a major oil producer.

The French Foreign Ministry issued a statement expressing deep concern over the situation in Lebanon and urging moderation.

Any spillover could have a significant effect on Middle East oil supply.

Turkey’s President Tayyip Erdogan has urged nations in the region to help Lebanon, saying his nation stands in solidarity with that country.

Meanwhile, after Israel invaded an area of ​​Gaza City, it told the Palestinians they had to go south. In what it described as the “final stages of an operation against Hamas militants”, Israeli soldiers also struck Rafah, a town in the south.

Yemen’s Houthis used a drone, several missiles and drones to hit the “Seajoy ship” in the Red Sea.

For months, the Houthi militia, which rules Yemen’s most populous areas, has been staging ship strikes in the nation’s territorial seas as a show of support for Palestinians fighting Israel in Gaza.

Also on the geopolitical front, Russia said that while no decision had been made, it was considering a potential decrease in ties with the West in Europe as a result of the increased involvement of the US and its allies in the conflict in Ukraine.

After rising war-related tensions in recent months, the deterioration or even termination of ties would highlight the seriousness of the conflict between Russia and the West over Ukraine.

The US Energy Information Administration (EIA) reported a weekly increase of 3.6 million barrels in crude oil inventories. Analysts polled by Reuters had expected a reduction of 2.9 million barrels.

Meanwhile, remarks by Atlanta Federal Reserve President Raphael Bostic in a policy paper on Thursday reaffirmed investors’ views that interest rates in the world’s largest economy will be cut starting in September and in the fourth quarter of this year.

In connection with