Oil prices experienced a significant surge, building on previous gains, subsequent to Hamas’s declaration that Israel was responsible for the death of its political leader, intensifying tensions in a region that contributes approximately one-third of the world’s crude oil production.
The global benchmark Brent oil neared $80 per barrel following a drop of more than 1% in the preceding session, while West Texas Intermediate hovered around $76. The conflict escalated as Hamas reported that Israel conducted an airstrike in Iran, resulting in the killing of its political leader, Ismail Haniyeh.
Hamas alleged that Haniyeh was assassinated in a Zionist airstrike at his residence in Tehran after attending Iran’s new president’s inauguration.
Israel had previously pledged to target Haniyeh and other Hamas leaders in response to the group’s attack on October 7, which led to the death of 1,200 individuals and the kidnapping of around 250 others.
This incident occurred subsequent to an Israeli attack in Beirut that resulted in the death of a senior Hezbollah commander, carried out in retaliation for a cross-border rocket assault on Israel the previous Saturday.
Nonetheless, concerns regarding demand in China continued to exert pressure on oil prices amidst the escalating geopolitical tensions.
