Oil marginally higher amid escalating conflict in Middle East

By Zeynep Beyza Kilic

Oil prices saw limited gains on Tuesday amid the escalating conflict between Israel and Hamas and a tentative resolution to US sanctions on Venezuela.

International benchmark crude Brent traded at $89.98 per barrel at 10.26 a.m. local time (0726 GMT), a 0.37% gain from the closing price of $89.65 a barrel in the previous trading session on Friday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $85.47 per barrel, up 0.25% from Friday’s close of $85.26 per barrel.

Market players are attempting to analyze the potential spillover of the violence, which began on Oct. 7 and has led to the deaths of at least 2,808 Palestinians and more than 1,400 Israelis, to other nations, as well as the impact on crude oil supply channels as the crisis escalates.

Meanwhile, market players are closely monitoring the outcome of the agreement reached between Venezuela’s government and opposition on new electoral conditions for 2024’s election that, once signed on Tuesday, will trigger relief from US energy sanctions on President Nicolas Maduro’s administration.

The US welcomed talks with US State Department spokesman Matthew Miller, saying, "The US will continue its efforts to unite the international community in support of the Venezuelan-led negotiation process."

After failing to accept Venezuelan President Nicolas Maduro's re-election in 2018, the US intensified sanctions on Venezuelan oil exports during former US President Donald Trump's administration in 2019.