Oil prices surged over 3% today, pushing a barrel above $80 for the first time since August, as rising tensions in the Middle East fueled the increase.
Brent crude had recently been volatile, dropping below $70 last month due to concerns over weakened demand, particularly as China’s economy faltered.
Today marks the one-year anniversary of the October 7 attack in Israel, the deadliest in its history, which ignited a devastating war in Gaza that has since spread to Lebanon. Israel is now preparing to retaliate against Iran for last week’s missile strike, heightening fears of a full-scale regional conflict.
In addition to Middle East tensions, oil prices are also being bolstered by hopes for stronger Chinese demand after Beijing recently introduced major stimulus measures to revive its struggling economy.
Stephen Innes, an independent market analyst, commented: “The oil market is on a wild ride, caught in a whirlwind of geopolitical tension, Opec+ strategy shifts, and a slowdown from its biggest customer, China.”
Shares of oil companies rose alongside higher prices, with Shell up 2.4% and BP gaining 1.3%. On Wall Street, Exxon advanced 0.9% while Chevron increased 0.7%
