Oil prices increased on Thursday with concerns that ongoing conflicts in the Middle East, where major oil producers are located, will disrupt global oil supply as Israel is expected to retaliate against Iran.
The international oil benchmark of Brent crude increased 1.2% to $75.82 per barrel at 11.14 am local time (0814 GMT), up from the previous session’s close of $74.90.
The US benchmark West Texas Intermediate also rose by 1.3% to $71.88 per barrel, compared to $70.95 at the prior session’s close.
Israel’s public broadcaster KAN claimed Wednesday that Israel is on the verge of attacking Iran, despite US pressure to ease the offensive.
According to KAN’s story, ‘Israel is on the brink of launching an attack on Iran, according to unnamed Israeli officials. We are witnessing one of the most tense and complex moments in Israel’s history as preparations for a potential strike on Iran are underway in response to its rocket attack on Israel.’
Israeli media has speculated that the attack might target oil or nuclear facilities, raising concerns and warnings about the possibility of a broader regional conflict.
Tehran has vowed a “more painful” response than its previous attack if it is targeted by Tel Aviv.
Meanwhile, experts are focused on economic indicators in major economies for clues on demand outlook.
Macroeconomic data announced in the US and positive financial results from large companies indicate that economic activity in the country continues to remain strong.
Analysts expect US Federal Reserve (Fed) to reduce the policy rate by 25 basis points next month while predictions that Fed will make a rate cut in December are at 65%.
The European Central Bank is forecast to reduce interest rate by 25 basis points at the December meeting with the possibility of 50 basis points reduction also being evaluated.
