Selangor Journal
Oil rig pumpjacks, also known as thirsty birds, extract crude from the Wilmington Field oil deposits area near Long Beach, California, the United States, on July 30, 2013. — Picture by REUTERS

Oil prices climb over two pct following escalating Middle East geopolitical tensions

ISTANBUL, Oct 2 — Oil prices surged over two per cent on Wednesday following escalating tensions in the Middle East, as concerns grew that Iran’s largest-ever military strike against Israel could lead to further conflict and disrupt crude oil production in the region, Anadolu Agency reported.

International benchmark Brent crude rose by 2.05 per cent to US$75.07 per barrel at 10.07am local time (0707 GMT), up from the previous session’s close of US$73.56.

US benchmark West Texas Intermediate increased by 2.23 per cent to US$71.39 per barrel after closing at US$69.83 in the prior session.

Both benchmarks traded higher as regional tensions escalated further after Iran fired around 180 ballistic missiles at Israel amid heightened tensions between the two regional arch-rivals.

Iran’s Islamic Revolutionary Guard Corps said the attack was in response to the assassinations of Hamas leader Ismail Haniyeh, Hezbollah leader Hassan Nasrallah, and IRGC commander Abbas Nilforoshan.

Israeli Prime Minister Benjamin Netanyahu said Iran made a “big mistake” and “will pay for it.”

However, Iranian Foreign Minister Abbas Araghchi said a “more severe response” would come if Israel retaliates against the Iranian missile attack on the country, during phone calls with his counterparts from the United Kingdom, Germany, and France, the Iranian News Agency reported.

The direct involvement of Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), raised the prospect of disruptions to oil supplies.

According to OPEC’s latest monthly oil report, the country produced 3.3 million barrels per day in August.

The Israeli army has launched a devastating military offensive on the Gaza Strip since October 7 last year, killing over 41,600 people, mostly women and children, and injuring over 96,400 others.

The conflict has spread to Lebanon, with the Israeli army launching massive airstrikes against what it calls Hezbollah targets, killing more than 1,073 people and injuring over 2,950 others since September 23, according to the Lebanese Health Ministry.

The international community has warned that Israeli attacks in Lebanon could escalate the Gaza conflict into a wider regional war.

— Bernama

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