Oil prices rose in Asian trade on Wednesday as Israel’s attack on Hamas targets in Qatar pushed up concerns over heightened geopolitical tensions in the Middle East, which could disrupt supplies.
The prospect of more U.S. restrictions on Russian oil, following a report that President Donald Trump called for more sanctions on Russian oil buyers, also buoyed prices.
Brent Oil Futures for October rose 0.7% to $66.92 a barrel, while West Texas Intermediate crude futures rose 0.7% to $62.72 a barrel by 21:41 ET (01:41 GMT).
Both contracts were headed for a fourth straight session of gains, especially after a smaller-than-expected production hike by the Organization of Petroleum Exporting Countries and allies (OPEC+) over the weekend.
Israel attacks Hamas targets in Qatar
Israel said on late-Tuesday that it had attacked Hamas leadership in Doha, drawing rebukes from Qatari and U.S. officials on concerns that such a move stood to derail ongoing peace talks.
Oil had risen as much as 2% on Tuesday following the attack, but had trimmed gains after U.S. officials said such an attack would not happen again.
Trump told reporters he was “very unhappy” about the strike and said he will issue a full statement on Wednesday.
Qatar is a security partner of the U.S. and hosts the al-Udeid Air Base, the biggest U.S. military facility in the Middle East. The country, along with Egypt, has acted as a mediator for talks between Israel and Hamas.
Hamas said that Israel had failed in its attempt to assassinate its negotiating team. But the group reported five casualties from the strike.
Israel’s attack now leaves future peace talks with Hamas uncertain, opening the door for continued military action by Jerusalem against the Palestinian group. A bulk of this action has been directed at the Gaza Strip, leaving markets on edge over geopolitical tensions in the Middle East.
US-Russia sanctions, tariffs in focus
Oil was also buoyed by the prospect of more U.S. sanctions against Russia, after Reuters reported Trump calling on the European Union to also steeply tariff India and China over their buying of Russian energy.
Trump has already imposed 50% tariffs on India, and was seen calling for 100% tariffs on New Delhi and Beijing. Such a move could cut off some sources of revenue for Russia and pressure Moscow into ending its long-running war with Ukraine.
More restrictions on Russian oil could also limit global supplies, especially if top buyers India and China cave in to Western pressure. But both countries have so far signaled few plans to stop their purchases of Russian oil.
Beyond geopolitics, oil markets were also focused on U.S. inventory data. Data from the American Petroleum Institute showed U.S. inventories grew by 1.25 million barrels in the week to September 5.
Source :
https://www.investing.com/news/commodities-news/oil-prices-rise-after-israeli-strike-on-qatar-usrussia-sanctions-in-focus-4232534
