Oil prices up as focus remains on Middle East conflict

By Firdevs Yuksel

ISTANBUL (AA) - Oil prices slightly increased on Monday over the supply worries due to the growing tensions in the Middle East.

International benchmark Brent crude traded at $84.53 per barrel at 11.18 a.m. local time (0818 GMT), a rise of 0.24% from the closing price of $84.33 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $80.90 per barrel at the same time, a 0.21% increase from the previous session that closed at $80.73 per barrel.

The escalating geopolitical tensions continue to put global energy supply routes at risk and drive up oil prices.

In recent weeks, the Israeli-Lebanese border has seen significant escalation, prompting repeated calls from the US to contain the situation.

According to sources cited by Channel 12, Israel has alerted the US it could use weapons never deployed before in the event of an all-out war with Hezbollah in Lebanon.

"Tel Aviv conveyed a message to the White House stating its intent to employ unspecified new weapons systems to swiftly deal with any potential conflict with Hezbollah and avoid a prolonged war," the Israeli television channel said.

Tensions have soared along Lebanon's border with Israel amid cross-border attacks between the Lebanese Hezbollah group and Israeli forces as Tel Aviv presses ahead with its deadly offensive on the Gaza Strip, which has killed more than 37,500 Palestinians since last October.

Yemen's Houthi group has also continued targeting cargo ships in the Red Sea, owned or operated by Israeli companies or transporting goods to and from Israel in solidarity with the Gaza Strip.

The Red Sea is one of the world's most frequently used sea routes for oil and fuel shipments.

However, ongoing uncertainties over the timing of the US Federal Reserve's (Fed) interest rate cut continue to raise demand concerns, limiting upward price pressures.

The Fed announced its monetary policy decisions and economic projections on June 12. The bank did not change the policy rate in line with expectations and kept it constant at 5.25–5.50%, the highest level in 23 years.

Experts believe that keeping interest rates at high levels for a sustained period may pose risks to the oil demand outlook.