Oil prices rose in early Asian trading on Wednesday, driven by heightened geopolitical concerns after Israel launched strikes on Hamas positions in Qatar, raising fears of supply disruptions in the Middle East.
Market sentiment was further bolstered by the prospect of additional U.S. sanctions on Russian oil, following reports that President Donald Trump has called for stricter measures on nations purchasing Russian energy.
By 21:41 ET (01:41 GMT), Brent crude for October delivery had climbed 0.7% to $66.92 a barrel, while West Texas Intermediate (WTI) rose 0.7% to $62.72 a barrel. Both contracts were positioned for a fourth consecutive day of gains, helped by OPEC+’s smaller-than-expected production increase over the weekend.
Israel Strikes Hamas in Qatar
Israel confirmed late Tuesday that it had targeted Hamas leadership in Doha, prompting criticism from Qatari and U.S. officials concerned that the attack could derail ongoing peace discussions.
Oil prices had jumped nearly 2% on Tuesday following the strike, though some gains were later trimmed after U.S. officials indicated a similar attack would not recur. Trump told reporters he was “very unhappy” about the strike and plans to release a full statement on Wednesday.
Qatar, a U.S. security ally that hosts the al-Udeid Air Base—the largest American military facility in the Middle East—has, along with Egypt, served as a mediator in Israel-Hamas talks.
Hamas reported that Israel’s attempt to target its negotiating team had failed, though it confirmed five casualties from the strike. The attack leaves the outlook for peace talks uncertain, with continued military action likely, particularly in Gaza, keeping markets alert to Middle East risks.
Potential U.S.-Russia Sanctions and Trade Moves
Prices were also supported by expectations of further U.S. sanctions on Russia. Reuters reported that Trump urged the European Union to impose steep tariffs on India and China over their Russian energy purchases.
Trump has already enacted 50% tariffs on India and reportedly seeks 100% tariffs on both New Delhi and Beijing. Analysts noted that “such a move could cut off some sources of revenue for Russia and pressure Moscow into ending its long-running war with Ukraine.”
Additional restrictions on Russian oil could constrain global supply, especially if major buyers India and China comply with Western pressure, though both countries have indicated little intent to curb their purchases.
Alongside geopolitical developments, traders monitored U.S. inventory data. The American Petroleum Institute reported that crude stocks in the U.S. rose by 1.25 million barrels in the week ending September 5.
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