Oil Prices Surge Amid Economic Optimism and Mideast Tensions

12 Aug 2024 , 09:56 AM

With the assistance of improved economic data and geopolitical worries, oil prices held onto most of last week’s gains of over 3% during early Asian trading on Monday.

U.S. West Texas Intermediate crude prices increased 2 cents, or 0.03%, to $76.86, while Brent crude futures declined 7 cents, or 0.09%, to $79.59 a barrel.

Prices were supported by the possibility of a worsening of the Israeli-Palestinian conflict after Iran and Hezbollah pledged to exact revenge for the killings of Hezbollah military commander Fuad Shukr and Hamas leader Ismail Haniyeh.

At least 90 people were killed in an airstrike on a school campus on Saturday, according to the Gaza Civil Emergency Service, however Israel claimed the death toll was inflated. This marked the intensification of Israel’s entry into Gaza. On Sunday, Hamas questioned if it would take part in fresh negotiations for a truce.

Due to positive economic statistics and expectations of a U.S. interest rate cut, WTI gained more than 4% and Brent concluded the week up more over 3.5%.

Last week, three U.S. central bankers stated that the Federal Reserve would lower interest rates as early as next month because inflation seemed to be abating enough.

While U.S. weekly jobless claims decreased more than anticipated last week, China’s consumer prices increased more quickly than anticipated in July.

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