Oct 2 2024, 02:36
Oil prices climbed about 3% on Tuesday after Iran fired a salvo of ballistic missiles at Israel in retaliation for Israel’s campaign against Tehran’s Hezbollah allies in Lebanon.
Brent futures gained $1.86, or 2.6%, to settle at $73.56 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.66, or 2.4%, to settle at $69.83. Earlier in the day, both crude benchmarks were up by over 5%.
Alarms sounded across Israel and explosions could be heard in Jerusalem and the Jordan River valley after Israelis piled into bomb shelters.
In the Red Sea, meanwhile, another Iran-backed group, the Houthis in Yemen, claimed responsibility for attacking at least one of two vessels damaged off the port of Hodeidah. The Houthis have launched attacks on international shipping near Yemen since last November in solidarity with the Palestinians in the war between Israel and Hamas in the Gaza Strip.
Before news that Iran was planning a missile attack, the oil market was trading down near a two-week low as the outlook for increased supplies and tepid global demand growth outweighed fears over an escalating Middle East conflict and its impact on crude exports from the region.
A panel of ministers from the OPEC+ producer group will meet on Oct. 2 to review the market, with no policy changes expected. Starting in December, the OPEC+ group comprising the Organization of the Petroleum Exporting Countries plus allies such as Russia is scheduled to raise output by 180,000 bpd each month.
Source : Reuters
