Oil was steady as Israel held off on its ground invasion of Gaza amid ongoing diplomatic efforts to secure the release of more hostages.
Global benchmark Brent hovered near $92 a barrel and West Texas Intermediate was little changed at around $88 a barrel after two weeks of gains. Israel warned that Iran-backed Hezbollah risked dragging neighboring Lebanon into war even as it continued fierce air raids on Hamas in Gaza. Over the weekend, an Iraqi airbase that hosts US and international forces was also targeted by rockets.
A widely expected ground offensive by Israel into the Gaza Strip was delayed — due to pressure from US and European governments — in order to buy time for efforts to secure the release of hostages held by Hamas, designated a terrorist group by the US and the European Union. An American mother and her daughter were released on Friday through the mediation of Qatar.
Oil has advanced about 8% since the Oct. 7 attack on Israel by Hamas. There are concerns the conflict will spread to other states including Iran, and even potentially draw in the US, which is increasing its local military presence. The region supplies about a third of the world’s crude.
Meanwhile, diplomatic efforts from leaders of western nations continued, with French President Emmanuel Macron expected to visit Israel on Tuesday. Aid was also trickling to Palestinians in the Gaza Strip through the Rafah border.
Traders also increased their bullish positioning, with hedge funds boosting their combined net bullish Brent and WTI oil bets in the week ended Oct. 17, exchange data released Friday showed. Oil’s volatility had also spiked last week.
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