Tensions in the Middle East are escalating, causing a rise in oil prices. This surge follows a recent attack by Hezbollah, which fired rockets into Haifa, Israel, on Monday. Meanwhile, the Israel Defense Forces (IDF) intercepted a surface-to-surface missile launched from Yemen, triggering sirens throughout the country.
As of Monday afternoon, oil prices have increased by nearly 3.5%. Traders are growing more concerned about a potential Israeli offensive against Iran. By 2:30 p.m. ET on October 7, Brent crude oil was up 3.31%, trading at $80.63, while West Texas Intermediate (WTI) was up 3.29%, trading at $76.83.
The situation is particularly tense on this date, marking the one-year anniversary of the October 7, 2023, Hamas attack on Israel, which initiated the current conflict.
Hezbollah announced that it had targeted an Israeli military base south of Haifa and launched a second strike approximately 40 miles away. The group has pledged to continue its attacks on Haifa, as reported by the Jerusalem Post.
In response, Israel has intensified its airstrikes against Hezbollah positions in southern Lebanon and in Gaza. Israeli missiles have been hitting the suburbs of Beirut, particularly near the international airport.
After a year of conflict, Israeli officials have confirmed that 728 troops have died, and 26,000 missiles have been launched at Israel. In contrast, Al Jazeera reports that over 40,000 people have died in Gaza.
Despite some analysts predicting that a possible Israeli strike on Iran may not significantly disrupt oil supplies, oil prices are expected to continue rising. Concerns persist that if Iran retaliates by targeting the Strait of Hormuz, it could lead to substantial supply issues. Additionally, some experts believe that Israel might target crucial Iranian oil export routes, even though Washington has advised Tel Aviv to avoid such actions.
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