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Crude Oil Prices Surge Amid Middle East Conflict Concerns
Crude oil prices saw significant gains in the latest trading session, driven by escalating tensions in the Middle East. Brent crude futures rose by 43 cents, or 0.6%, to settle at $78.05 per barrel, while US West Texas Intermediate (WTI) crude futures increased by 67 cents, or 0.9%, closing at $74.38 per barrel.
The upward trend in prices has been primarily fueled by the growing threat of a broader regional conflict due to hostilities between Israel and Iran. Concerns that the conflict could disrupt oil supplies from the Middle East, one of the world’s largest oil-producing regions, have led to increased market volatility.
Biggest Weekly Gains in Over a Year
On a weekly basis, Brent crude posted an impressive gain of over 8%, marking its most significant weekly increase since January 2023. Similarly, WTI also recorded strong gains for the week, reflecting heightened market uncertainty and potential supply disruptions.
Impact of US Intervention
Despite the price surge, gains were somewhat capped following comments by US President Joe Biden, who urged Israel not to target Iran’s oil facilities. This diplomatic intervention eased fears of an immediate impact on the region’s oil production, helping to temper price hikes.
Market analysts are closely monitoring developments in the region, as any further escalation could lead to more volatility in global energy markets. The situation remains fluid, with potential supply chain disruptions posing a continued risk to the stability of crude oil prices in the coming weeks.
