Crude oil futures were rallying for a third day in a row on Tuesday after Israeli military strikes on Gaza heightened tensions in the Middle East.
Brent futures (BZ=F), the global benchmark, rose 1.1% to top $71 a barrel, while US benchmark West Texas Intermediate futures (CL=F) put on 1.3% to trade above $68.
The overnight airstrikes by Israel put paid to a nearly two-month ceasefire with Hamas. They also added to Middle East risks already in play after US assaults on an Iran-backed Houthi group behind attacks in the Red Sea.
The hit to global crude supply as the US clamps down on Iran “could range in the order of 1 million barrels a day, offsetting gains from OPEC as it phases out voluntary production cuts,” ANZ Group Holdings analysts Brian Martin and Daniel Hynes said, according to Bloomberg.
While oil is trading near its highest levels in March, prices are still headed for a quarterly loss as concerns about the impact of US tariffs on global economic growth and demand.
