Key takeaways:
- Oil prices have surged in response to the looming Israeli ground assault on Gaza.
- The Biden administration has warned Israeli counterparts to show restraint and avoid mass civilian casualties.
- The United States has tightened sanctions on major crude-producing countries, further stoking market fears over a drop in supply as demand increases.
As tensions in the Middle East continue to rise, oil prices have surged in response to the looming Israeli ground assault on Gaza. The Biden administration has warned Israeli counterparts to show restraint and avoid mass civilian casualties, while also giving them a measure of latitude to pummel Hamas from land, air and sea.
On Friday morning, the price per barrel of West-Texas Intermediate, the benchmark for contracts to deliver oil produced in the U.S., climbed more than $3 to $86.10. Murban crude, the measure for futures contracts of oil loaded at a major port in the United Arab Emirates, leapt to $91.10.
The Biden administration has expressed its concern over a potential humanitarian disaster in Gaza, which could turn world opinion against the Jewish state. In a speech on Tuesday, President Biden called Hamas’ actions “pure evil” and outlined the atrocities they have committed.
The United States has also tightened sanctions on major crude-producing countries, further stoking market fears over a drop in supply as demand increases. The Biden administration has urged all sides to de-escalate the situation and find a peaceful resolution to the conflict.
The international community is watching closely as the situation in the Middle East continues to unfold. With the Israeli ground assault imminent, the Biden administration is hoping to avoid a humanitarian disaster and a further escalation of violence in the region.
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