Singapore, August 1 – Oil prices jumped significantly in Asian trading on Thursday, driven by escalating tensions in the Middle East following the killing of Hamas leader Ismail Haniyeh. Investors fear that the development could trigger a wider conflict in the region and disrupt oil supplies.
Oil Prices Soar
The price of West Texas Intermediate (WTI) crude futures, the U.S. benchmark, rose 0.94% to $78.64 a barrel. Brent crude futures, the international benchmark, climbed 2.66% to $80.72 a barrel.
Escalating Conflict
The killing of Haniyeh comes shortly after an attack on a senior commander of Lebanon’s Hezbollah. These incidents have raised concerns that the conflict in Gaza could spread to the wider region. Such a development could lead to disruptions in oil supplies from the Middle East, which would undoubtedly impact global oil prices.
Implications for the Global Economy
Rising oil prices could have a ripple effect on the global economy. Higher oil prices typically lead to increased fuel costs, which can then be passed on to consumers in the form of higher prices for goods and services.
Analysts warn that the situation in the Middle East remains tense and oil prices could continue to rise if the conflict escalates.
| Commodity | Price (USD/barrel) | Change from previous day | Percentage change |
|---|---|---|---|
| WTI (September contract) | 78.64 | +0.73 | +0.94% |
| Brent (October contract) | 80.72 | +2.09 | +2.66% |
