Tensions continue to soar in the Middle East, bringing oil prices along with them, as with Hezbollah firing rockets into Israel’s Haifa city on Monday, and the Israel defense forces intercepting a surface-surface missile fired from Yemen that set sirens blaring across the country.
Oil prices are tracking nearly 3.5% upwards on Monday afternoon, as traders became increasingly convinced of a high-level Israeli attack on Iran.
On Monday, October 7, at 2:30 p.m. ET, Brent crude was trading up 3.31% at $80.63, while West Texas Intermediate (WTI) was trading up 3.29% at $76.83.
Tensions are running particularly high on Monday due to the one-year anniversary of the October 7 2023 Hamas attack on Israel that set this latest round of warfare in motion.
Hezbollah claimed on MOnday to have targeted an Israeli military base south of Haifa and a second strike some 40 miles away, vowing more strikes on Haifa to come still, the Jerusalem Post reported.
For its part, Israel has stepped up its bombing of Hezbollah targets in south Lebanon, and in Gaza. Israeli missiles are pounding the Beirut suburbs, targeting an area near the international airport.
After a year of war, Israeli authorities have stated officially that 728 troops have been killed and 26,000 missiles have been fired at Israel, compared to over 40,000 killed in Gaza, according to Al Jazeera figures.
Oil prices remain on course for more gains, despite some analysts’ predictions that what is said to be an imminent Israeli attack on Iran may not be severely disruptive to oil supplies unless Iran targets the Strait of Hormuz. Some pundits have suggested that Israel could strike a key export artery for Iranian oil, among other oil and gas targets that Washington has asked Tel Aviv to avoid.
By Charles Kennedy for Oilprice.com