LONDON — Oil prices experienced a rise on Tuesday as ceasefire negotiations in Gaza continued alongside an ongoing Israeli military operation at the Rafah border crossing. The uncertainty and heightened geopolitical tensions contributed to the volatility in oil markets.
According to Philippines News Agency, the international benchmark Brent crude was priced at USD 83.42 per barrel at 10:28 a.m. local time (0728 GMT), marking a 1.32 percent increase from the previous session’s close of USD 82.33 per barrel. Meanwhile, the American benchmark West Texas Intermediate was recorded at USD 78.55 per barrel, up slightly by 0.09 percent from the closing price of USD 78.48 per barrel in the previous session.
The increase in oil prices is linked to the ongoing Israeli assault on the Palestinian side of the Rafah border crossing, as reported by the Palestinian news agency WAFA. The agency noted that Israeli forces had launched rocket attacks on buildings in the area, casting doubts on the success of ceasefire efforts. This development has exacerbated concerns about potential escalations in a region critical to global oil supply.
On the diplomatic front, Hamas has expressed its acceptance of a ceasefire proposal mediated by Qatar and Egypt. Ismail Haniyeh, the leader of Hamas, confirmed the group's agreement to the ceasefire in conversations with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani and Egyptian Intelligence Chief Abbas Kamel. Despite this, the Israeli War Cabinet has opted to continue its military actions in Rafah.
Further influencing oil prices is the strengthening US dollar, which was recorded at an index of 105.26 at 9:07 a.m. local time (0607 GMT). The stronger dollar makes oil pricier for holders of other currencies, potentially tempering demand despite the ongoing conflict.