Oil up over 4%, reset by Mideast crisis; all eyes on Iranian supply
Investing.com — Crude prices were up 4% Monday as the latest Middle East crisis reintroduced geopolitical risk into the oil trade in a way unseen in years, resetting markets that just days ago were depressed more by concerns over the global economy.
With an hour to settlement, New York-traded West Texas Intermediate, or WTI, crude for delivery in November was up $3.72, or 4.5%, to $86.51 per barrel by 13:30 Eastern US (17:30 GMT). The US crude benchmark rose to as high as $87.23 earlier.
London-traded Brent for the most-active December contract was up $3.50, or 4.1%, to $88.08. The session high was $89 — just a dollar short of bringing the global crude benchmark back to the key bullish mark of $90 per barrel.
As Hamas rockets continued to rain on Israel’s largest city, Tel Aviv, and Prime Minister Benjamin Netanyahu vowed to “change the Middle East” with Israel's war against the Palestine militant group, oil traders tried to ascertain the immediate impact of the crisis on oil supply from Iran.
Tehran is not only the world’s fifth largest crude exporter but also a vociferous supporter of the Palestine cause — and often initiator of Middle East conflagration.
Iran is tacitly known to be behind Hamas at all times. To reinforce that notion, an adviser to Iranian Supreme Leader Ali Khamenei said Tehran supported the operation against Israel that had reportedly killed some 1,300 people at the time of writing, and led to the abduction of dozens of Israelis by ground forces of the militant group.
“We congratulate the Palestinian fighters for this operation,” Yahya Rahim Safavi said, adding that Iran would stand by the Hamas fighters until they had “liberated” Palestinian territories and Jerusalem from Israeli control.
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