OIL (brent) contracts are gaining nearly 4.2% today, and the price approached the important psychological level of $90 per barrel before the weekend - erasing much of the downward reaction triggered by concerns about global demand (as well as lower consumption and rising gasoline stocks in the US).
Israeli forces fire on targets in Lebanon
The main reason why oil jumps higher today is rise to risk aversion due to escalation risk in the Middle East conflict. US Secretary of State Blinken indicated that there is no return to 'business as usual' on the Hamas issue, and Iran's foreign minister stressed that the country will make an increased effort to stop 'Israeli crimes' in the Gaza Strip. This rift, as well as a possible ground operation by the Israeli military, indicates that the mood in the Arab world could escalate further in the future.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appAccording to NNA news reports, an exchange of fire between the Israeli military and Hezbollah was said to have occurred today, near the border with Lebanon. Israeli military forces reported on Twitter that drones are currently striking terrorist targets belonging to the terrorist organization, in Lebanon. Although the issue of a wider conflict between Israel and Arab states currently remains only in the realm of 'probability assumption' - is prompting traders to increase long positions on oil, which, like the US dollar, is becoming a beneficiary of risk aversion.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
