Oil prices have jumped on concerns that the situation in Israel and Gaza could disrupt output from the Middle East.
Brent crude was up $2.28, or 2.7%, to $86.86 a barrel by 0859 GMT, while U.S. West Texas Intermediate crude was at $85.23 a barrel, up $2.44 or nearly 3%. Both benchmarks spiked by more than $4 a barrel earlier in the session.
The surge in oil prices reversed last week’s downtrend – the largest weekly decline since March – in which Brent fell about 11% and WTI retreated more than 8% as a darkening macroeconomic outlook intensified concerns about global demand.
Israel and Palestinian territories are not oil producers but the Middle Eastern region accounts for almost a third of global supply.
Hamas’s assault on Israel was the biggest escalation between the two sides for decades.
Energy analyst Saul Kavonic told the BBC that global oil prices have risen “due to the prospect of a wider conflagration that could spread to nearby major oil-producing nations such as Iran and Saudi Arabia”.
Lagos govt reopens Ladipo, Oyingbo, other shut markets
“If the conflict envelops Iran, which has been accused of supporting the Hamas attacks, up to 3% of global oil supply is at risk,” Kavonic added.
Caroline Bain, chief commodities economist at Capital Economics, told the BBC’s Today programme that Iran had been increasing oil production over the course of this year despite US sanctions.
Kavonic said that about a fifth of global supply would be “held hostage” if passage through the Strait of Hormuz, a vital oil trading route is disrupted.
The Strait of Hormuz is crucial for the main oil exporters in the Gulf region, whose economies are built around oil and gas production.
- Oyebanji: I’ve achieved 90% of my promises to Ekiti people - December 26, 2024
- Check Opportunities migrates to Gidanmu platformOne of Nigeria’s leading platforms for accessing information on scholarships, grants, and educational opportunities, Check Opportunities, has officially announced its migration to Gidanmu.For years, Check Opportunities has been a trusted resource for students, professionals, and opportunity seekers across Nigeria, offering timely and reliable updates on scholarship openings, academic grants, and global learning opportunities. The migration to Gidanmu marks a significant step towards enhancing user experience, improving access to resources, and broadening the platform’s reach.According to the management, this transition aims to provide a more seamless and user-friendly interface while integrating advanced tools to ensure users can effortlessly access verified opportunities. Users are encouraged to follow the transition updates closely and ensure their accounts are fully migrated to the new platform.This move underscores Check Opportunities’ commitment to innovation and continuous improvement in delivering value to its growing community.“We are excited about this migration to Gidanmu, which represents a bold step towards better service delivery and an enhanced user experience for all our stakeholders,” said Temple Alowolodu, the CEO of Check Opportunities.For further details and updates, users are encouraged to visit Gidanmu and stay tuned for announcements on the official social media channels.The Star - December 26, 2024
- Bishop Odedeji: Jesus birth, most remarkable event in human history - December 25, 2024
