Early Asian trading witnessed a surge in oil prices as optimism waned concerning potential ceasefire negotiations between Israel and Hamas, amplifying tensions in the Middle East.
Brent crude futures ascended 40 cents to $90.78 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 35 cents to $86.78.
The conclusion of recent ceasefire discussions in Cairo between Israel and Hamas halted a multi-session rally on Monday. Brent experienced its first decline in five sessions, and WTI in its first in seven, amid emerging prospects of subsiding geopolitical risks.
Israeli Prime Minister Benjamin Netanyahu announced on Monday the establishment of an undisclosed date for Israel’s incursion into the Rafah enclave in Gaza.
Furthermore, a senior Hamas official declared on Monday that Hamas rejected Israel’s latest ceasefire proposal during the Cairo talks.
Oil prices had dipped a day earlier amid hopes for a ceasefire deal between the warring groups in the Middle East. Recent developments, particularly ceasefire negotiations, hinted at a potential reduction in conflict intensity.
Of particular note was the U.S.’s call on Israel to ease its offensive against Gaza, citing concerns over human rights violations.
OPEC+ Upholds Production Cuts
Meanwhile, projections of diminished oil supplies had bolstered crude prices in recent weeks, maintaining their influence.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) reaffirmed their commitment last week to sustain production cuts until the end of June, with top producer Russia hinting at further reductions.
Moreover, Russian fuel production was disrupted by Ukrainian strikes on the nation’s oil infrastructure, which resulted in the closure of several significant refineries.
