Oil up over eased US recession fears, heightened Mideast tension

By Firdevs Yuksel

ISTANBUL (AA) - Oil prices rose on Monday with the eased recession fears in the US, the world's largest oil consumer, while geopolitical tensions in the Middle East, home to the majority of global oil reserves, supported prices.

International benchmark Brent crude traded at $80.11 per barrel at 10.30 a.m. local time (0730GMT), an increase of 0.56% from the closing price of $79.66 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $77.46 per barrel at the same time, a 0.81% rise from the previous session that closed at $76.84 per barrel.

Prices had fallen due to concerns about economic activity in top oil consumers the US and China.

Investors worried that the US Federal Reserve could be too late in easing its monetary policy, pushing the US economy into a recession.

However, some encouraging economic data from the US suggested that a recession in the world’s largest oil consumer may not be imminent.

As traders bet that US recession fears were overblown, more key economic data is expected this week.

Monthly reports from the Organization of Petroleum Exporting Countries and the International Energy Agency are also due this week.

On the other hand, Israel is on alert for possible military attack from Iran, Hezbollah in Lebanon, Houthis in Yemen, and Iranian-backed armed militias in Iraq and Syria following the assassination of Hamas chief Ismail Haniyeh in Tehran at the end of July.

Israel has not taken responsibility for Haniyeh's assassination but did claim responsibility for the earlier assassination of prominent Hezbollah leader Fouad Shukr in the Beirut suburb.

In addition, the Israeli onslaught on Gaza intensified on Saturday with the Israeli army killing over 100 civilians and injuring dozens when a warplane targeted Palestinians performing Fajr (dawn) prayers at the Al-Taba'een School in the Al-Daraj neighborhood in Gaza City, according to health authorities.