Oil Prices Stabilize as Markets React to Mideast Tensions
Oil prices steadied after the killing of Hezbollah leader Hassan Nasrallah in an Israeli airstrike, with traders closely monitoring the evolving situation in the Middle East, Bloomberg reports.
Brent crude, the global benchmark, hovered around $72 a barrel, while West Texas Intermediate traded above $68. The airstrike, which targeted Beirut, Lebanon’s capital, dealt a significant blow to Hezbollah and its Iranian sponsor.
Following the airstrike, Israel also conducted bombing raids on targets in Yemen after Iran-backed Houthi rebels launched attacks on central Israel earlier this month. Despite these developments, Iran has not escalated the conflict, with President Masoud Pezeshkian taking a relatively restrained stance during his speech at the United Nations, stopping short of threatening direct action against Israel.
Although tensions in the region have heightened due to the ongoing Gaza war between Israel and Hamas, global oil production remains stable. OPEC+ is considering adjusting output curbs, and China’s economic slowdown has contributed to reduced demand, keeping prices relatively low.
Goldman Sachs analysts, including Daan Struyven, noted that the limited impact of geopolitical risks on oil prices reflects market expectations of stable supply. The bank maintained its forecast for Brent to reach $74 a barrel by the end of the year.
The recent shift in the Middle East conflict led to a surge in trading activity, with more than 18,000 contracts on the Brent futures market exchanging hands within the first two hours of the trading day.
