Oil prices rose on Wednesday after the tragic event at the Gaza hospital that left hundreds of Palestinians dead and caused concerns about global oil supply disruption
Brent crude futures, the global benchmark, advanced $3, or more than 2%, to $92.90 a barrel, while West Texas Intermediate crude (WTI) futures were up $3 (2.1%) at $89.66 a barrel, with both benchmarks reaching their highest levels in two weeks.
“The cancellation of a summit between Biden and Arab leaders reduces the likelihood of a diplomatic solution to the Israel-Hamas conflict,” Vivek Dhar, an analyst at Commonwealth Bank of Australia, said.
“A long occupation looms as the scenario that pushes Brent oil futures above $100 a barrel because it raises the risk that the Israel-Hamas conflict expands and potentially draws in Iran directly.”