Oil extends gains for fifth session on Mideast tensions

London: Oil prices rose for a fifth consecutive session on Monday, extending gains from the previous week’s more than 3 percent rise, as US recession fears eased while geopolitical tensions in the Middle East supported prices.

Brent crude futures were up 73 cents, or 0.9 percent, to $80.39 a barrel by 0812 GMT, while US West Texas Intermediate crude futures rose 88 cents, or 1.2 percent, to $77.72.

“Support is coming from last week’s better-than-expected US data which eased fears of a US recession,” IG markets analyst Tony Sycamore said.

“There is also a great deal of anxiety about when Iran might look to avenge Israel’s assassination of key Hamas and Hezbollah leaders. Feels like a matter of when - not if.”

Iran and Hezbollah have vowed to retaliate for the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr. “The market is still waiting for Iran’s response,” ING’s head of commodities research Warren Patterson said.

In addition, the Israeli incursion into Gaza intensified on Saturday with an airstrike on a school compound that killed at least 90 people, according to the Gaza Civil Emergency Service, though Israel said the death toll was inflated.

Hamas cast doubt on its participation in new ceasefire talks on Sunday.

Brent gained 3.7 percent last week, while WTI rose by 4.5 percent, buoyed by economic data and increased hopes of a US interest rate cut.

Three US central bankers said last week that inflation appeared to be cooling enough for the Federal Reserve to cut interest rates as soon as next month.

China’s consumer prices rose faster than expected in July, and US weekly jobless claims fell more than expected last week.

On Monday, Russia evacuated civilians from parts of a second region next to Ukraine after Kyiv increased military activity near the border just days after its biggest incursion into sovereign Russian territory since the start of the 2022 war.

SOURCE: REUTERS