Oil prices slide after rallying to highest in over month with Middle East tension

By Firdevs Yuksel

ANKARA (AA) - Oil prices saw a slight decline on Tuesday as investors took profits following recent highs fueled by supply concerns linked to escalating conflicts in the Middle East.

International benchmark Brent crude fell by 2% to $79.16 per barrel at 10.39 am local time (0739 GMT), down from Monday’s close of $80.80. Meanwhile, US benchmark West Texas Intermediate (WTI) declined by 2.18% to $75.14 per barrel, compared to its prior session close of $76.82.

The recent price rally began after Iran launched a series of ballistic missiles at Israel on Oct. 1, marking an intensification in the region’s tensions. Israeli Prime Minister Benjamin Netanyahu condemned Iran’s actions, calling it a "big mistake" and vowing consequences. While there is speculation that Israel could target Iran’s oil facilities, analysts say a direct strike remains unlikely.

"Any impact loss of supply can be covered by OPEC's 7 million barrels per day of spare capacity," noted Daniel Hynes, a commodity strategist with Australia and New Zealand Banking Group, in an e-mail statement.

Tensions have continued to flare, with the Israeli army deploying a new division to southern Lebanon. Hezbollah responded with intensified rocket and artillery attacks against Israeli forces. On Tuesday morning, the Israeli army claimed to have killed a senior Hezbollah commander in an airstrike in southern Beirut.

On the demand side, concerns persist over China’s economic growth and its impact on fuel demand. China’s National Development and Reform Commission expressed optimism about meeting full-year economic targets, committing to support growth but refraining from announcing new stimulus measures.