Oil Prices Rise After Rise in Middle East Tensions

Global oil prices saw a moderate increase this Wednesday following heightened geopolitical tensions in the Middle East. The immediate trigger was an Israeli strike targeting Hamas leadership in Qatar, which fueled concerns over regional stability and potential supply disruptions.

In Asian trading, Brent crude futures for October delivery climbed 1.0% to $67.02 per barrel, while U.S. West Texas Intermediate (WTI) rose 1.1% to $63.30 per barrel, marking a fourth consecutive day of gains. On Tuesday, both benchmarks briefly surged nearly 2% before giving up some gains after U.S. assurances to Qatar that similar incidents would not recur.

Despite rising tensions, the market response was relatively restrained. Analysts point to a global oil oversupply combined with weak demand as key factors dampening price spikes. OPEC+'s modest production increase and the lack of immediate supply disruptions further limited upward momentum.

Oil prices rose amid geopolitical uncertainty, but the rally was muted by structural oversupply, cautious sentiment, and assurances against repeated escalation. Traders remain vigilant, keeping an eye on Middle East developments, potential sanctions, and inventory trends.

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