London
Amid mounting geopolitical tensions triggered by the Israel-Hamas conflict, Brent oil futures stabilized above the $90 per barrel mark, with investors closely monitoring developments to gauge potential impacts on global oil markets. Brent futures experienced a slight decline of 0.43%, settling at $90.50 a barrel, while U.S. West Texas Intermediate (WTI) crude saw a 0.3% drop to $87.43 a barrel.
Friday’s significant surge, with both benchmarks recording a nearly 6% climb, underscored the apprehension surrounding a potential escalation in the Middle East crisis. Investors factored in the prospect of heightened conflict in the region, emphasizing concerns about potential spillover effects involving Iran.
Echoing the anxieties, Iran cautioned about the risks of a spiraling situation, urging a halt to what it termed war crimes and genocide. The visit of U.S. Secretary of State Antony Blinken to Israel signals ongoing diplomatic efforts to de-escalate the tensions and find a viable path forward. Reports of ceasefires being discussed and denied only added to the uncertainty surrounding the conflict’s trajectory.
Further complicating the outlook, the meeting between China and Russia’s foreign ministers highlighted the global attention drawn to the Israel-Hamas conflict, reinforcing the implications for broader diplomatic relations. In addition to the geopolitical concerns, the imposition of sanctions by the United States on Russian oil tankers exceeding the G7’s price cap of $60 per barrel indicates a concerted effort to restrict Moscow’s oil exports, consequentially impacting global oil supply dynamics. The resulting uncertainty has contributed to a volatile market landscape, with experts emphasizing the challenges of making concrete price predictions amid the ongoing crisis and geopolitical complexities.
