Oil Prices Spike As Middle East Tensions Escalate

Yolowire 2-Oct-2024 10:29 AM

%Oil prices are up more than 3% in European trading as tensions in the Middle East continue to escalate, potentially disrupting crude production and supplies throughout the region.

In the last 24 hours, oil prices have risen as much as 5% after Iran launched missiles at Israel, a situation that could lead to a broader war across the Middle East.

Brent crude oil, the international benchmark, is trading just under $76 U.S. a barrel, while West Texas Intermediate (WTI) crude oil, the American standard, is at $72.30 U.S. per barrel.

Before this latest escalation in the Middle East, oil prices had languished near multi-year lows throughout September due to demand concerns in China, the world’s largest energy importer.

Energy analysts say there is a real possibility that the widening conflict in the Middle East will disrupt global crude oil production and supplies, which could lift prices further in coming weeks.

Many analysts say they’re watching to see if a broader war in the Middle East disrupts Iranian oil shipments through the Strait of Hormuz, a key trade route for oil tankers.

Stocks of oil producers are rising along with crude prices. Oil major %Chevron (NYSE:CVX) shares have gained 4% in the last 24 hours, while %ExxonMobil (NYSE:XOM) shares have risen about 5%.