Oil gains as Middle Eastern conflict escalates
The Middle Eastern conflict has escalated over the weekend, raising concerns about potential oil supply disruptions and supporting Brent’s price, market analysts said.
PHOTO: Crude oil barrels. Getty Images
Brent’s price moved higher following news about the death of a senior Hezbollah leader Hassan Nasrallah on Saturday.
The Israel Defense Forces (IDF) conducted an airstrike on Hezbollah's headquarters in Beirut, Lebanon, which killed Nasrallah and other prominent leaders of the Iran-aligned group, it said on its official social media platform X (formerly Twitter).
“Brent crude reversed some losses… after Israel said its military struck Hezbollah’s main headquarters in southern Beirut,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.
Market analysts warn that further escalation between Israel and Hezbollah could directly involve Iran in the conflict, threatening supply from the Middle East.
On Sunday, the Israeli Air Force (IAF) struck specific targets belonging to the Yemen-based Houthi militants, the IDF said. The targets included power plants, and a seaport used by the group to transfer Iranian weapons and crude oil, the IDF claimed.
“The recent escalation of attacks in the Middle East is increasing the likelihood of Iran being directly dragged into the conflict, putting a significant risk around supply disruptions at the OPEC producer,” Hynes added.
By Aparupa Mazumder
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