Oil Market in Turmoil: Middle East Conflict Drives Prices Up

The oil market is in the spotlight once again as prices look towards a second weekly increase following a rise of over 3% on Thursday. The backdrop is the tense situation in the Middle East, with Israel planning retaliatory measures against Iran. These developments raise the question of potential disruptions to oil supply from this crucial producing region. West Texas Intermediate (WTI) stabilized near $76 per barrel, indicating a weekly increase of almost 2%, while Brent crude settled at over $79 per barrel. On Thursday, Israeli Prime Minister Benjamin Netanyahu's security cabinet convened to discuss a response to the recent missile attack from Iran. The risk of potential supply shortages has increasingly become a focus of the global oil market in recent weeks, triggered by escalating tensions in the Middle East. Although U.S. President Joe Biden has warned against attacks on energy facilities in Iran, the third-largest OPEC producer, the possibility remains, causing investor anxiety.