In a significant move, Brent oil soared to $90 for the first time since October, reversing a minor earlier drop as the session closed.
The surge linked directly to increasing global tensions and the cautious stance of Federal Reserve leaders on interest rate reductions.
Furthermore, President Joe Biden called for a swift ceasefire in Gaza, highlighting the need for measures to shield civilians and aid workers.
This demand came amidst escalating conflicts and was a condition for continued U.S. support.
May’s WTI crude concluded at $86.59 a barrel, up 1.36% or $1.16. June’s Brent crude also rose, by 1.45% or $1.30, reaching $90.65.
This uptick reflects broader market dynamics and geopolitical undercurrents.
In Israel, the day started with disrupted GPS signals, a measure by the military anticipating retaliation from Iran or its allies.
This was in response to a supposed Israeli airstrike on an Iranian building in Syria.
Following the tragic loss of seven aid workers in Gaza, a wave of international criticism hit Israel.
Biden’s dialogue with Netanyahu happened amidst this turmoil. Israel had to apologize for mistakenly attacking an aid convoy, thinking it was a threat.
Oil Prices Rise, with Brent Hitting $90 for the First Time Since October
This period also saw a decrease in the dollar’s decline, influenced by remarks from Federal Reserve officials.
Neel Kashkari from the Minneapolis Fed suggested two rate cuts might be on the horizon, differing from the broader expectation of three.
This suggestion hinged on the current inflation rate, questioning the timing of these cuts.
In summary, oil prices witnessed a significant rise amidst global unrest and cautious economic policies.
This event reflects the interconnectedness of geopolitical developments, economic decisions, and market reactions.