Oil steadied as the US intensified diplomatic efforts to contain the crisis in Gaza even as Israel warned of a protracted war against Hamas.
West Texas Intermediate held above $86 a barrel after losing more than 1% on Monday. US President Joe Biden will travel to Israel, people familiar with the decision said. Separately, US Secretary of State Antony Blinken is due to make an announcement after a 7.5-hour meeting with Israel’s Prime Minister Benjamin Netanyahu.
Beyond the region, meanwhile, crude traders will track events in Barbados, where Venezuela’s government may sign a deal with the opposition later on Tuesday. If concluded, such an agreement could pave the way for the US to ease sanctions against the country, potentially boosting oil exports.
The crude market has been left on edge by the crisis in the Middle East on concern it risks spreading beyond Israel and Gaza, endangering crude flows. With Israel preparing to launch ground offensive into Gaza, Iran, which supports Hamas, warned an expansion of the war is “approaching the inevitable stage.”
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