Oil prices surge, Brent above $91 as Israel-Hamas tensions worsen
investing.comInvesting.com-- Oil prices rose sharply in Asian trade on Wednesday after a deadly blast at a Gaza hospital appeared to have stymied a U.S. diplomatic effort in the Israel-Hamas war, while industry data showed that U.S. inventories shrank more than expected last week.
The White House said U.S. President Joe Biden will not visit Jordan as part of his Israel trip, after Jordan’s Foreign Minister Ayman Safadi said that a planned summit between U.S., Egyptian and Palestinian leaders will not take place. The trip was seen as an attempt to maintain support for Israel while also placating Arab states and preventing a bigger escalation in the conflict.
The move came just a few hours after an explosion at a crowded hospital in Gaza City reportedly killed hundreds of Palestinians, which was blamed on both Israeli and Hamas forces. The blast drew ire from the international community, and dampened hopes for a swift deescalation in tensions in the Middle East.
This in turn fueled renewed concerns that a spillover of the Israel-Hamas conflict could disrupt crude supplies in the oil-rich Middle East region- a notion that had boosted oil prices through the past week.
The news helped oil prices reverse most losses seen earlier this week, with Brent futures now sitting comfortably above the key $90 a barrel level.
Brent oil futures rose 0.8% to $91.60 a barrel, while West Texas Intermediate crude futures jumped nearly $1 to $87.26 a barrel by 20:19 ET (00:19 GMT).
Fears of an escalation in the Israel-Hamas war, particularly that other Middle Eastern countries could join the fray, had boosted oil prices over the past week, helping them shrug off headwinds from a stronger dollar and fears of higher interest rates.
Markets also largely
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