Sunday 22 Dec
Oil prices have surged amid heightened geopolitical tensions and uncertainty. Following Israel's assassination of Hezbollah leader Hassan Nasrallah, the market is closely watching Iran's retaliation. Additionally, investors are factoring in China's economic stimulus measures, which could boost demand for oil, the world's largest importer.
Brent crude for December delivery
has surpassed $73 a barrel, while West Texas Intermediate is trading above $69.
Nasrallah's death in a Beirut airstrike has dealt a significant blow to
Hezbollah and its Iranian patron. Israel has also carried out airstrikes in
Yemen in response to attacks launched by Iran-backed Houthi rebels.
Despite rising tensions in the Middle East, crude oil prices have remained relatively lower this year. While the situation has not yet escalated into a full-scale conflict that could disrupt regional oil supplies, the potential for such an event is a looming threat. Meanwhile, global oil production remains abundant, with OPEC+ planning to ease production cuts. China's economic slowdown has dampened demand, although Beijing's recent stimulus efforts may help to mitigate this impact.
