Middle East Unrest Drives Oil Prices Higher

24 Sep 2024 , 09:49 AM

Oil prices climbed on Tuesday, fuelled by concerns that the escalating conflict between Israel and Hezbollah may have an influence on supplies in the crucial Middle Eastern producing region, as well as a tropical storm later this week in the United States, the world’s largest petroleum producer as well as consumer.

Israel’s military said it conducted airstrikes on Hezbollah installations in Lebanon on Monday, killing 492 people and sending tens of thousands fleeing for their lives in the country’s worst day in decades.

Brent crude futures for November rose 21 cents, or 0.3%, to $74.11 a barrel. U.S. crude futures for November rose 24 cents, or 0.3%, to $70.61.

Israel and Hezbollah, an Iranian-backed militia based in Lebanon, exchanged fire after thousands of Hezbollah members’ pagers and walkie-talkies blew up last week. The incident was widely blamed on Israel.

Hezbollah has been exchanging fire with Israeli forces across the border since its Palestinian allies Hamas in Gaza and Israel declared war on October 7.

Both prices closed lower on Monday as investors focused on demand concerns following dismal eurozone business data and ongoing concerns about Chinese fuel consumption.

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